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Official: Amazon is Buying Twitch

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Amazon is officially buying Twitch, according to a press release just sent out by the company.

The deal includes Amazon acquiring all outstanding shares of Twitch for “approximately” $970 million in cash. Amazon hopes to close the deal in the second half of this year. 

The future of Twitch should not concern its loyal users, at least according to Amazon CEO, Jeff Bezos, who said that they “look forward to learning from them [Twitch] and helping them move even faster to build new services for the online gaming community.”

Twitch CEO Emmett Shear also said in the announcement that “Being a part of Amazon will let us do even more for our community. We will be able to create tools and services faster than we could have independently. This change will mean great things for our community, and will let us bring Twitch to even more people around the world.”

Amazon.com to Acquire Twitch

SEATTLE–(BUSINESS WIRE)–Aug. 25, 2014– Amazon.com, Inc. (NASDAQ: AMZN) today announced that it has reached an agreement to acquire Twitch Interactive, Inc., the leading live video platform for gamers. In July, more than 55 million unique visitors viewed more than 15 billion minutes of content on Twitch produced by more than 1 million broadcasters, including individual gamers, pro players, publishers, developers, media outlets, conventions and stadium-filling esports organizations.

“Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month – from The International, to breaking the world record for Mario, to gaming conferences like E3. And, amazingly, Twitch is only three years old,” said Jeff Bezos, founder and CEO of Amazon.com. “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 and Twitch optimize for our customers first and are both believers in the future of gaming,” said Twitch CEO Emmett Shear. “Being part of Amazon will let us do even more for our community. We will be able to create tools and services faster than we could have independently. This change will mean great things for our community, and will let us bring Twitch to even more people around the world.”

Twitch launched in June 2011 to focus exclusively on live video for gamers. Under the terms of the agreement, which has been approved by Twitch’s shareholders, Amazon will acquire all of the outstanding shares of Twitch for approximately $970 million in cash, as adjusted for the assumption of options and other items. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2014.

Update:  Here is the statement from Twitch

Today, I’m pleased to announce we’ve been acquired by Amazon. 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.

I personally want to thank you, each and every member of the Twitch community, for what you’ve created. Thank you for putting your faith in us. Thank you for sticking with us through growing pains and stumbles. Thank you for bringing your very best to us and sharing it with the world. Thank you, from a group of gamers who never dreamed they’d get to help shape the face of the industry that we love so much.

It’s dangerous to go alone. On behalf of myself and everyone else at Twitch, thank you for coming with us.

Via:  Amazon
  • Kris Cortez

    What other services could they possibly give us? You click a video to watch a stream.

  • Bill Anderson

    “Twitch is no longer availiable for Android devices. Only FireOS and iOS devcies. Have a nice day.”

  • Greyhame

    Boo.

  • Joshua Rewerts

    So maybe while they’re creating an Amazon-branded app for twitch content, they’ll release the Amazon Instant Video app to the rest of us?

  • Liderc

    I can’t imagine how these companies are worth anything what these giants are paying for them.

    It’s just the most glaring bubble i’ve ever witnessed in 20-30 years. It will burst and bankrupt so many companies it’s going to be a nightmare.

    A billion dollars for a gaming streaming company? Don’t know what’s worse.. that or WhatsApp.

    • Kevin

      i know what’s worse – snapchat’s estimated worth

      • Liderc

        Have you ever used Whatsapp? it’s AWFUL. At least I can understand snapchat (I don’t use it) but WhatsApp is one of the most poorly designed messaging apps ever. A free messaging app I use for style similarities works better and looks better.

        I agree though, Snapchat is in the same boat as the rest of these ridiculously priced companies.

        They’re not worth a 10th of what they’re being bought for.

        • Kevin

          at least they generate income per user though after the first year. snapchat doesnt generate a thing at this point in time.

          • http://aQuickBit.com aQuickBit

            That’s why it’s an estimated value based on their userbase.

          • Kevin

            yeah… and $10 billion is a pretty generous estimate when so far their business model is: give app away for free, generate no income. i’m not claiming to be an expert, and i don’t know what ideas are being kicked around behind the scenes, but i dont think userbase is some guarantee to fortune. time will tell.

    • http://www.youtube.com/watch?v=Y28e4cFHVqE&context=C400d214ADvjVQa1PpcFOiLGlDqf2sJr2k4TNISoJzm8bFM7wgYKU= TheAndroid1

      Twitch is 1.8% of all internet traffic (This is not the same as individual website hits. This number will be artificially high because Twitch streams video, but still.)
      I don’t think a billion dollars is that much when you look at things in perspective.

      In addition, the phrase “A billion dollars for a gaming streaming company” just goes to show that you have no idea how big Twitch has gotten (along with esports in general). Twitch has around 45 million viewers per month. 13 billion minutes of content watched per month.

      While I agree that we are in a tech bubble right now, I would not agree that Twitch is overvalued.

      When coupled with Amazons other offerings, this has the potential to be huge for Amazon. Think about it, rather than having an advertisement where you have to go to some website, they could implement a button where you could directly buy a product from an ad. Twitch has recently been cracking down on unlicensed music being played on the stream. Amazon may be able to get a deal in place where streamers can pay a monthly fee to have access to music to play on stream. The list goes on.

  • T4rd

    I guess Google is gonna have to buy Amazon now. =p

    • Chris Hughes

      I love me some google…and even then I would start to get worried if that happened.

  • Jared Denman

    It’s really worth 970m? I can’t believe that kind of company is worth that much…. Seems crazy

    • michael arazan

      I’ve never even been to the site and I game. When ever I want to watch levels of a game, preview a game, or anything else I want to see in a game I go to YouTube.

    • Brian S.

      They’re buying the community, there are no other communities that do it like this. It’s where the potential for the next golden age of gaming…. Let’s make it happen. Amazon could say “hey you guys keep doing what you’re doing, we’ll just support you, anything you need. Then maybe they start gathering information about the community’s needs and from that find out what the average people really wants see in a game.

  • Mordecaidrake

    Wait, didn’t Google buy twitch?

    • http://www.facebook.com/2000miles kOnEkT

      I thought the same thing??? I thought GOOGLE bought Twitch. This makes no sense.

      • Justtyn Hutcheson

        Google was rumored to be talking with Twitch about a buyout, but apparently those talks did not result in a deal. Or, Amazon simply offered a better deal in some form or fashion (likely full cash purchase vs. cash/stock purchase).

        • michael arazan

          Free Prime for Life?

    • Jonbo298

      Too many sources that were not directly in the talks and gaming sites reporting anything they heard as fact. There was a lot of talk by Google and Twitch but something happened in those talks that we’ll find out in due time.

  • http://www.haiensheng.com/#cid-discus Eric Hansen

    An interesting way to get into the Live Streaming game…