Amazon Is Officially Acquiring Twitch [Updated]
Update 3: It looks like Google backed out of the deal because of antitrust concerns. Forbes has the story.
Update 2: And it’s official. Amazon just put out the press release. Here’s what it says:
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.
Twitch CEO Emmett Shear posted a letter about the acquisition here.
Update: Now The Wall Street Journal is also reporting that Amazon has acquired Twitch, and that the price was over $1 billion. It says an announcement could come as soon as today.
It’s been reported throughout the summer that Google was buying video game streaming site Twitch. Now, a new report says Amazon is actually about to acquire it.
Back in May, Variety reported that Google was in talks to buy Twitch in an all-cash offer, and that the deal was expected to be announced imminently.
About a month ago, VentureBeat reported that Google had reached a deal to buy the company for $1 billion, and that the company would join YouTube. “Google has signed a deal,” the report said.
Then, earlier this month, Justin.TV, the company behind Twitch announced that it was shutting down Justin.TV itself to focus on Twitch – a move that would make sense if it were being acquired by Google.
A big curveball has just been thrown, however, as The Information is now reporting that Amazon has swooped in, and is in late-stage talks to acquire Twitch. This is according to two people familiar with the matter, it says.
According to one of its sources, a deal could be announced soon.
This is certainly an interesting turn of events as Google and Amazon compete in an increasing number of spaces. Amazon is also said to be getting ready to take on Google’s AdSense with its own offering.
Regarding the Twitch acquisition, someone is going to come away looking less credible aft
Image via Twitch