Report: Amazon to buy Twitch for over $1 billion [Update: It’s official!]

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Online retail giant Amazon is in late stage talks to purchase Twitch.tv, the world’s number one video game streaming service, according to two reports today.  The first report surfaced on The Information, saying that the two companies are in “late-stage talks” and the deal could be announced as soon as today, according to two people close to the situation.  The Wall Street Journal has confirmed the report, saying that the the company will be purchased for over $1 billion, according to someone briefed on the situation.

In May, it was reported that the tech behemoth Google’s subsidiary Youtube was set to buy Twitch for $1 Billion, but The Wall Street Journal reports that those talks have cooled, and it seems Amazon has made all the right moves to purchase the streaming company.  Twitch has made moves over the last few months to introduce a YouTube-like copyright violation identification system for audio, but these policy changes were met with large backlash from the community.   Amazon, Google, and Twitch have yet to comment on the news.

This reporter’s opinion:  I personally would much prefer this acquisition to Google owning Twitch.  This way, there is still competition in the market place.  But to put this all into perspective, things looked almost guaranteed during the last rumor of purchase with Google, so this one may fall through as well.  I’ll be monitoring this situation closely though.

Update

It’s official, Amazon has purchased Twitch.  In a statement on Twitch’s blog, Twitch CEO Emmett Sheer said the following  “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.”

Amazon CEO Jeff Bezos spoke on the 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 – 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 ofAmazon.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.”

by, Bobby Marquardt

 

 

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