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Amazon to acquire Twitch in a $970 million cash deal
Amazon to acquire Twitch in a $970 million cash deal
August 25, 2014 | By Alex Wawro, Christian Nutt

UPDATE: Twitch has confirmed that it has been acquired by Amazon for $970 million, in an all-cash deal. The acquisition has been approved by Twitch's shareholders, and is expected to close in the back half of this year.

This afternoon, Twitch sent out a release confirming the deal; its CEO Emmet Shear also posted a "thank you" message on its official site.

"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," Shear writes.

"Like Twitch, we obsess over customers and like to think differently, and we look forward to learning from them and helping them move even faster to build new services for the gaming community," Amazon founder and CEO Jeff Bezos said in a statement.

Original Story: The Wall Street Journal reports that Amazon is in talks with Twitch to acquire the livestreaming platform for more than $1 billion, according to a source familiar with the deal. The Information has also published a similar report, based on information from two unnamed sources.

This is notable because multiple media outlets reported earlier this year that Google was in talks to buy Twitch for $1 billion. The ardor around those talks has cooled, according to the Wall Street Journal's source.

Earlier this month, Twitch shuttered its non-gaming sister site and significantly changed how it handles archived footage and copyright infringement detection, moves that would likely make it a more appealing target for acquisition.

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Ryan Christensen
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This makes all youtube monopoly scares gone, this is great, there are now two channels (and more will arrive after one goes this big like messaging apps after WhatsApp). Everyplay is also there so three I guess (Unity supported).

Amazon is actually a good steward of services it buys, making them better usually: Zappos, Audible, imdb to name a few.

I am actually happy to hear this. It also shows Amazon is focused on game supporting networks and has been doing alot with studios, FireTV, Fire Phone etc.

Jonathan Murphy
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You consider what happened when they tried the Google bot method. It wasn't pleasant. I think this may be a good match. Since an Amazon console won't sell well, this is the next best step.

SD Marlow
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I'm sure Fire TV will have Twitch support soon enough (and by that I mostly mean some API that will let game dev's include live stream support directly in-game).

Felipe Budinich
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I like this. It's better to have competition than a google monopoly.

Kyle Redd
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"We’re keeping most everything the same: our office, our employees, our brand, and most importantly our independence," Shear writes."

This seems to be a common line among just-acquired tech companies - "We're still independent." You just got purchased by another company. You're not independent anymore. They own you and have total control over everything you do in the future.

David Canela
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Amazon has been struggling for a while, financual markets have been growing impatient. It will be interesting to see where all of this leads. Much more interesting than an acquisition by youtube/google, that's for sure...

Alan Barton
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They can't be that struggling, they just found another nearly $1B to buy Twitch! :)

Financial markets are short sighted. They always have been and always will be. They want profit now, even if that's sell the company in a fire sale. They don't care about longer term goals.

Amazon have said for years they throw all their income back into expansion, so it looks like they have low margins, but they are (currently) valued at around $170B! ... If that's struggling, every company in the world would be very happy to be struggling like them! :)

Chris Book
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I wonder if they're regretting that purchase yet since Twitch has barely been functional this week.

Michael Joseph
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Some of these setups look fairly professional

I think there will be a lot of communications majors trying to start a career in broadcasting or broadcast production (with an anchor that's recruited for their charisma more than their gaming credentials) on platforms like twitch.

Some broadcasters are sharing their Amazon WishList basket links with their viewers. They're doing product recommendations (eg games, music, pc hardware), and (often inadvertently) product placement.

What retailer wouldn't want their very own pop culture video "network" from which to advertise all their sales and what not?

Is the gold rush for online broadcasting just beginning? Time will tell...