September 1, 2014 0 Comments
In a surprise move last week, Amazon scooped up and acquired the massively popular video gaming platform Twitch for $970 million in cash. Just a few months ago, everyone thought that Google, who dangled $1 billion dollars to buy the company, would acquire Twitch. The deal fell through due to Google’s concern about potential antitrust issues that could come with the acquisition.
So why does a retailer like Amazon want a gaming company like Twitch? For revenue and member-base. Twitch is a potential revenue powerhouse. It has 55 million monthly users, with 58% of these users spending more than 20 hours a week on the website. In February, it ranked fourth in peak Internet traffic in the U.S., after Netflix, Google, and Apple, respectively. Twitch will fortify Amazon Games and give Amazon access to advertise and sell to millions of people in the ever expanding, highly engaged and increasingly lucrative gaming community.
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