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Amazon will reportedly buy Twitch for over $1 billion [Update: It's official]

Amazon will reportedly buy Twitch for over  billion

Update Twitch has now made the official announcement on their acquisition by Amazon via a post from their CEO Emmett Shear. He stated, "We chose Amazon because they believe in our community, they share our values and long-term vision, and they want to help us get there faster. We're keeping most everything the same: our office, our employees, our brand, and most importantly our independence. But with Amazon's support we'll have the resources to bring you an even better Twitch." Amazon has also issued its own press release, stating that it is purchasing Twitch for $970 million in cash. It added that the acquisition will officially close sometime in the second half of 2014.

Original story Amazon may be about to make an end run around Google in a bid to purchase the Twitch.tv game video streaming service. The Wall Street Journal reports that Amazon will acquire Twitch.tv for over $1 billion, according to an unnamed source.

In May, Google's YouTube subsidiary was rumored to purchase Twitch.tv, which has 45 million viewers a month, for over $1 billion. That deal was reported to be finalized back in June. However, neither YouTube nor Twitch.tv announced that such an acquisition had taken place.

So what happened? It's not clear what caused Google to step out and Amazon to step in to purchase Twitch.tv. The Wall Street Journal claims the official announcement on the deal could be revealed today. We should soon see if these reports are accurate. What do you think of the prospect of Amazon purchasing Twitch.tv and what do you think Amazon will do with the game video streaming company?

Source: Wall Street Journal

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Reader comments

Amazon will reportedly buy Twitch for over $1 billion [Update: It's official]

122 Comments

I can't imagine. Neat service, but that is a lot of money. Regardless, glad to see Amazon get instead of Google.

Yeah because amazon's support for windows phone is... well better than google I guess... But still not great.

The difference is that they aren't coming at platform agnostic (cross platform) with a grudge. They are coming at it with a market share sense. Amazon and MS are by far the only two top companies that are platform agnostic. MS more than I would like them to be to help grow share, but WPis not making them the money that being on other platforms is.

And, like I said earlier, your assertion that Amazon is platform neutral is inaccurate. Amazon holds a grudge and holds it hard. Their most valuable app is Amazon Instant. It is not available in WP. But, even more shocking, it is not available to Android users in general. That is not a company that is only seeking marketshare.

You do not ignore close to a billion users if you are only seeking marketshare. If you want to praise Amazon and attack Google, at least be factual. 

Fair points. Though my argument is based on the very well documented spat between Google and MS. And I am not necessarily praising Amazon. Their support of WP is dismal as well. Regardless, fair points.

I seem to remember Microsoft making a pretty large deal with Barnes and Noble a few years back, so Amazon probably has a little beef with them. Also, B&N currently has that Samsung Android Tablet deal too, which is probably why Amazon has ignored android as well. With that said, I believe we have a much better chance of support with amazon vs a flat out blocking of service to MS users for no reason like the Goog is known to do.

Probably because it's easy to steal a movie with Android. Instant isn't on Windows either, it would easy to steal it. Xbox, not so easy.

Why? Just because you hate Google? You may not like Google but when they acquire comapnies, they have been known to turn them into success stories more often than not. 

People forget that Youtube was acquired by Google. 1.6B

Android was acquired by Google. 50M

Waze was acquired by Google. 966M

Amazon's top app is their Amazon Instant app. It is only available to people using Amazon devices and iOS users.  If they ignore almost a billion Android users, WP users should not hold their breaths. 

I just want the best applications available to me. I do not care who brings it. 

See reply to penetronn. Not due to me not liking Google. Due to the grudge they are holding. Amazon isn't much better, sure. But amazon is not due to this little spat between companies, amazon is due to share. Don't put words in my mouth.

What you listed was successful (except android) before google purchased them. And most of android's "success" has as much to do with OEM's as it does google. Hello...Samsung? 

LOL. And Twitch is successful now. The point is, they did not botch it. Why is this so hard for some people here to get? 

If by "turn them into success stories" you mean turn them into crappy spyware, then yes, you're right. I'm so glad that Amazon stole Twitch away from Google. I wish Microsoft had gotten them, but I'll gladly take Amazon over Google. Google would've destroyed Twitch just like they ruined YouTube.

To be honest I'd rather not have Microsoft buy Twitch because of the possibility of Microsoft taking advantages with Twitch on Xbox One. Not saying that Microsoft is evil, just saying this would be possible to happen if Microsoft was the one to buy Twitch.

You must be new to the ways of Microsoft. If anything they'd put all their efforts into updating and releasing Twitch apps for PS4 and WiiU first, and then half-heartedly update Twitch for Xbox One later on.

I'm with you. I was such a huge Google supporter at first, now they are just plain horrible people. Any effort to keep they're hands off more stuff is a blessing. Google is evil.

Amazon doesn't really contribute to the Windows ecosystem aside from their Amazon Mobile, Audible and Kindle apps, even though Microsoft supports their ecosystem, so I doubt we'll see a streaming app from them anytime soon.
However, it's still a bigger possibility than the zero chance of Google doing anything.

Um, how about Amazon Instant Video so I can actually put my Prime subscription to use on the go?

Also, they don't have an app for downloading and playback of Amazon purchased mp3s, while both Android and iOS have Amazon Cloud Player.

Amazon does a much better job of Windows Phone support than many other companies, but it could still do with some major improvement.

That would probably be blocked unless they committed to not degrading the service on PS4. I wouldn't want Microsoft to own Twitch because there'd be too many implications to not improve the service on PS4. I don't own a PS4, but it'd be silly and unfair. (And on the flip side, continuing to improve PS4 over xbox would be a poor business decision as well).

Oh, you mean how goolg ehas bought mobile services and suddenly they won't be updated/released on WP? 

I use it when there's a game I'm on the fence about coming out.  I'll watch 20 or 30 minutes of gameplay and it'll help me make a decision.  I bought the South Park RPG earlier this year after watching about 20 minutes on twitch.  It's also good for strategy on multiplayer games, mostly MOBAs.  You can watch what others do and maybe they have a good strategy that you can adopt.

My thoughts, after watching Diablo 3 feeds, I was able to decide if I wanted to buy and what all heroes could do. This could be done on YouTube but Twitch integration within Xbox Marketplace right next to buy button was a huge help than to switch screens or apps.

It's entertainment like any other form of media, in this case it's just entirely focused towards gaming. Both regular and professional people streaming their gameplay, talk shows, live podcasts, live gaming tournaments and events etc.

Wow. I never knew free entertainment could be so vehemently bad for you. 

 

Twitch is pretty much the only place to watch pros play your favorite games, whether it's Hearthstone, Dota, SC2, LoL, or plenty of other games. It's like youtube, but gaming and live stream centric. I don't know why it being popular is hard to grasp.

Well you can watch your favorite games if you can't play it atm, you can see how others play, and can see if you enjoy the games. Being live is good so the streamer can, if they want, reply to you in the middle of his stream. I love Twitch. I watch new games when they come out, and i watch FIFA.

It's all the league of legend stuff. I only watch it for tournaments of fighting games. But a lot of times when i just want to relax and get a laugh in, i watch saltybet. Other than that,i never use it unless a friend is streaming

It's perfect when there is a game with good reviews but you don't know if you would like it. Like last week steam had a portal bundle sale, so I looked it up on Twitch to see what it was like. Ended up buying it.

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It doesn't make sense. The only product, in amazons stable that is relevant is Prone Video, and even that's a stretch... MS, Google, and Sony, or maybe Valve, are the only companies that make GOOD sense, in this case. Glad it's not the Goog, but its still a strange more for Amazon.

As long as whoever buys it can supply some half-decent Europe servers, I don't really care WHO buys it. :)

Me too. Google buys to shut competitors down or keep them away. Whereas Amazon is more open in this regard.

The rumors were that Microsoft bid on Twitch as well, but that Twitch chose Google instead. Now, they seem to have gone with Amazon. I wish Microsoft had gotten Twitch, but I'm just glad Google didn't.

Phew. Happy google wasn't the one buying. I would instantly have stopped using twitch if that was the case. Stepping away from everything google except YouTube, which is pretty hard to find a replacement of.

Anybody is better than google because seeing how once google gets it it means no windows phone or windows 8/9 app, we can safely say the world is a better place keeping google out of the way.

"We chose Amazon because they believe in our community, they share our values and long-term vision, and they want to help us get there faster"

C'mon son! We know why you really chose Amazon.  lol.

 

I don't get how Microsoft is missing out on all this.. Twitch would have been an amazing acquisition for Xbox. Bleh

with 98 billion in cash, surely they could have doubled it. However surely google could have too which probably means this wasn't just about money, but twich didn't want to end up in the MS or G verse.

I don't see how a service, that covers multiple platforms, would want to be gobbled up by one of said services and possibly later be told you can't no longer stream PS or Nintendo material. Not suggesting MS would ever do such a thing. Maybe twitch didn't want to burn any bridges or ruffle any feathers. Get gobbled up by a neutral party and keep everyone happy (neutral as far as gaming goes).

I don't think so. Xbox One have twitch support even is Microsoft don't own twitch. Why to spend money if you have support?

The funny thing is, if ever something happens which causes a general data loss - all those companies are worth almost nothing.

I mean, look, while it would be nice for Twitch to stay independent, I honestly did breath a sigh of relief when I read the headline because I thought Google already bought them.

Google doesnt need twitch... they have youtube.  They would be better invested trying to get the gaming community to move over to youtube streaming then buying twitch outright.  Amazon doesnt have a Name for video streaming so buying twitch works for them.  I think you are going to start seeing amazon and google battle it out soon, and M$ siding with Amazon to push them over. 

the problem with youtube is that when it comes to what twitch does, youtube isn't even remotely as popular. And let's not forget google has been trying to get people to dump FB and twitter in favor of their own stuff and so far, that has failed misserably, therefore aquisition was key since gone are the days where google could clone a service that was stablished and suck users out of it. I'm sure Page ain't happy but ultimately he probably has bigger things to worry about.

I wonder if google would have won if they had not tried to force plus down everybody's throats in addition to all the flops around real names and g+ on youtube.

It seems twitch had plenty of buyers but chose to stay away from google in favor of amazon because quite simply google isn't really the hot dear of the internet anymore.

I like amazon more than google; Glad they purchase it. Of course, it would've been nice if MSFT had it instead but amazon will do.

A Billion? With a B?

For watching junior stream his play of Death Mutants Space Camp IV?

And here Amazon was just about to make that first penny's worth of profit... (They don't actually make money, just take it in from investors and spend it. True Story; check it out.)

Dang I would have seen a company with video game services buy twitch or its going to be useless if their starter platform isn't working out

wow... amazon. I honestly think it's better than google, but really... these guys are really going for the money and not really for the customer. I don't expect many good things about this, but then... I haven't really used Twitch much this year, it just stop being that great thing you wanted... not anymore.

Sounds like Google tried to swallow them whole lol...

"We're keeping most everything the same: our office, our employees, our brand, and most importantly our independence"

This is still a win in my book, anything Google buys is a loss as they are bound to kill of Windows and Windows Phone development.