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Amazon buys video-game streaming site Twitch | Amazon buys video-game streaming site Twitch |
(35 minutes later) | |
In a surprise move, Amazon has bought video-game streaming service Twitch for $970m (£585m). | In a surprise move, Amazon has bought video-game streaming service Twitch for $970m (£585m). |
Earlier in the year, Google's YouTube had been reported to be in late-stage acquisition talks for a similar amount. | Earlier in the year, Google's YouTube had been reported to be in late-stage acquisition talks for a similar amount. |
Founded in 2011, Twitch - formerly known as Twitch.tv - allows users to watch other people play video games. | Founded in 2011, Twitch - formerly known as Twitch.tv - allows users to watch other people play video games. |
As of July of this year, the service had over 55 million unique monthly viewers. | As of July of this year, the service had over 55 million unique monthly viewers. |
"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 Amazon chief executive Jeff Bezos in a statement. | |
"We look forward to learning from them and helping them move even faster to build new services for the gaming community," he added. | |
Streaming wars | |
The move is seen by many analysts as helping Amazon in its quest to beat other streaming video sites like YouTube and Netflix. | The move is seen by many analysts as helping Amazon in its quest to beat other streaming video sites like YouTube and Netflix. |
Twitch allows users to broadcast snippets of their game play and its services are built into gaming platforms like Sony's PlayStation 4 and Microsoft's Xbox One. | |
Amazon currently offers Prime subscribers access to streaming television and movies on its site, and has recently begun commissioning original programming - following in the footsteps of Netflix, which found success with House of Cards and Orange is the New Black. | |
Twitch adds a cadre of committed gamers to Amazon's potential audience. | |
The all-cash deal is one of the company's biggest acquisitions to date. | |
More resources | |
Twitch's founders have attempted to quell any concerns that the Twitch's community may have about the acquisition. | |
"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," wrote Mr Shear in a letter to users. | |
"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." | |
Twitch.tv was created as an offshoot to Justin.tv, which was founded by Justin Kan and Emmett Shear as a platform in which Mr Kan could live-stream his life. | Twitch.tv was created as an offshoot to Justin.tv, which was founded by Justin Kan and Emmett Shear as a platform in which Mr Kan could live-stream his life. |
Following the success of Twitch, Justin.tv was closed earlier this month. | |
'Seat at the table' | |
Twitch had raised over $35m in investment from firms such as Thrive Capital. | |
Even so, some have scratched their heads that the video game clip firm could be valued at nearly a billion dollars - a similar reaction that greeted news of Facebook's billion-dollar acquisition of photo-sharing service Instagram in 2012. | |
"I'm sure that there's a spreadsheet somewhere that has a valuation that gets to that," Brian Blau, research director of consumer technology at research firm Gartner told the BBC. | |
"But in the end, you're starting to see a lot of these billion dollar deals and it seems that if you want to play poker, a billion dollars is what it costs to have a seat at the table," Mr Blau added. |