Amazon Buys Twitch for Almost $1 Billion
So much for the billion-dollar Google deal. After months of rumours, reports, hints and supposed confirmations, it turns out that the $1 billion purchase of game streaming site Twitch by Google/YouTube never actually happened. Instead, Amazon has stepped up and ninja’d their way into a Twitch purchase for the same $1 billion that Google reportedly offered.
The deal went very quickly from preliminary report to official. A website called The Information reported the sale just after 1:00 PM yesterday and the official announcement of the sale came less than four hours later. Considering that we had months of rumours of Google buying Twitch, the biggest surprise is how this deal came almost completely out of nowhere.
The deal is worth about $970 million in cash. From the sounds of it, Amazon finds some cultural similarities between the two companies so buying Twitch and allowing it to operate independently of Amazon should allow the live-streaming site to grow and thrive with the technical and financial backing of the world’s largest online retailer.
Reportedly, the deal between Twitch and Google died because of anti-trust considerations that were likely to arise from Google owning both YouTube and Twitch as well as the breakup fee that would be paid if the deal fell through due to regulatory or legal intervention.
Unlike the potential Google deal, the reaction to Amazon buying Twitch is overwhelmingly positive. I’d imagine the fear that the poor ContentID, DMCA and comment systems in place on YouTube were likely to rollout on Twitch were the reason for the concern over Google buying Twitch even if they’d likely bring in a better VOD system and integration with YouTube.
The Amazon deal is likely getting overwhelming positive reactions from gamers because Amazon isn’t becoming the evil empire yet and they’re keeping Twitch an independent operation from Amazon proper. There’s also the benefits from integrating with Amazon’s existing tech including Prime streaming video and integration with the Amazon store front to go along with the deep pockets of Amazon to make an impact on the future of Twitch.
Source: Ars Technica