Amazon acquires Twitch for $970 million

Posted on August 29, 2014

 

Online retailer Amazon has purchased video-streaming site Twitch in a deal that sees the company fend off many of its online tech rivals, including Google and Yahoo.

The deal, in which Amazon paid a total of $970 million (£585 million) for the popular streaming service, is the company’s largest acquisition in its 20-year history.

Twitch has been a target for many tech companies, with a deal previously expected between the site and search giant Google earlier this year. However, the proposed move fell apart in the more advanced stages of negotiations, with online news providers reporting that this was because of fair competition laws, as Google already owns YouTube, the most popular video site online. Search rivals Yahoo also approached the website and enquired about the possibility of a deal.

The reasons behind Amazon’s latest move remain unclear, but it is believed that it could be part of a reputation management strategy that sees the company entering many industries for the first time. Twitch could become involved with Amazon’s video-streaming service Amazon Instant Prime.

Twitch has seen rapid growth over recent months; it attracted more than 55 million viewers to subscribe to its services following a popular social experiment called Twitch Plays Pokémon, which engaged over one million viewers and participants in a two-week window.

The deal is set to be completed in the coming months, pending approval from regulators. Amazon has kept its plans for the video-streaming site quiet thus far, but is reportedly excited by future prospects.

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