August 29, 2014

Amazon acquires gaming website Twitch

It was announced recently that Amazon is acquiring Twitch in a $970 million cash deal. Twitch is a website that features content for the video game community. The significant draw of the website is that it provides a way for gamers to watch videos of other gamers playing games. The service has millions of viewers and is incredibly popular, hence the interest from major players such as Amazon and Google. 

Previous speculations had claimed Google might be the company that would snatch up the service, however this was not the case. As Tech Crunch points out, there had been much speculation surrounding the possibility that Google might acquire the company and it is unclear exactly what Amazon intends to do with the acquisition. Tech Crunch notes that Amazon does not have a way for users to upload their own content, however, it recently created a section of the website containing video game trailers and reviews. It is additionally noted that Amazon does business in selling games and could have possible opportunities for monetization with this acquisition. 

"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," said Jeff Bezos, the founder and CEO of Amazon, in a statement, according to CNN Money

Whatever Amazon's intentions are with the acquisition of Twitch, it is clear that the company saw an opportunity to increase its value and expands its offerings in some way through this deal. Any company considering a merger or acquisition needs a sound acquisition strategy. An M&A advisor can provide expert guidance in these matters.