Earlier today we speculated on the prospect of Amazon sweeping in and buying Twitch out from under Google, and it has now been made official as Amazon.com has announced today that it has reached an agreement to acquire Twitch Interactive, one of the leading video streaming platforms for the gaming community.
What was it worth to Amazon? Approximately $970 million dollars in cash. Under the terms of the agreement, which has been approved by Twitch’s shareholders, Amazon will acquire all of the outstanding shares of Twitch. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2014.
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 e-sports organizations.
Jeff Bezos, founder and CEO of Amazon stated about 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…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.”
Twitch CEO Emmet Shear added: “Amazon and Twitch optimize for our customers first and are both believers in the future of gaming…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 as a spinoff of the now-defunct justin.tv.