1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (1316) 

Google Twitch-out, Amazon Twitch-in

August 26, 2014 | About:

Both the giants were vying to buy out Twitch, one of the leaders in video game live-streaming business across the globe. For the last few months or so the market was abuzz with the news of Google (NASDAQ:GOOG) acquiring Twitch, and the speculators were all set to analyze the Google-Twitch prospects but at the end things fell apart for Google and the e-commerce giant Amazon (NASDAQ:AMZN) notched up Twitch. Now that Amazon has officially confirmed their acquisition of Twitch for a whopping $970 million in cash, let's delve a little deeper and unravel the story about this most talked about acquisition in the recent times.

Twitch reckoner

Twitch is undoubtedly the global leader in the virtual gaming zone. The company dominates the world in video platform and community for gamer’s arena with more than 55 million visitors per month. The Twitch platform connects gamers worldwide and allows them to broadcast, watch and chat from everywhere and anywhere they are plugged in to their game. From retro favorites to strategic esports titles, first-person shooters to massively multiplayer pasta cooking dating simulators, if you are into gaming then Twitch is where you shop for all your gaming needs.

Twitch is home to the most dedicated and highly skilled gamers on the planet. They shatter world records. They cruise through the newest titles. They make headlines with world-first accomplishments, and they make it all look easy. Discover why they’re the best at what they do on Twitch.

Twitch is also known for its prowess in organizing the best gaming events and large scale gaming competitions that ensure packed stadium viewership. This is the place where most gamers across the world feel that the next generation of video games would be born.

This is also the storehouse of the coolest online video shows in the gaming world, according to most of the modern day gamer clan. From behemoths like Joystiq, Gamespot and Destructoid to insiders like LiveonThree, ManvsGame and Day9, this is where you’ll find them all. Indeed Twitch is the vanguard of live gaming entertainment.

Google’s passing affair with Twitch

For a month, reports were abuzz in the market that Google had purchased Twitch for more than a billion dollar deal. As such reports did the rounds, the Google watchers started stacking up their calculations on Google based on the future speculations about the Google Twitch unison. But on the contrary Twitch started behaving differently during this period brewing up confusion. Twitch began rolling out a number of unprecedented and unpopular changes including the launch of an automated audio matching algorithm intended to put a full stop on copyrighted music on archived videos. In the wake of such unwarranted and unexpected changes, the market started questioning the validity of the news on whether the Google acquisition of Twitch actually happened.

Entry of Amazon in Twitch’s life

Now The Wall Street Journal dropped a news bomb – Twitch is being married to Amazon and not Google. Amazon is acquiring Twitch for more than $1 billion. Wall Street said that, over the last few weeks, the relationship between Google and Twitch soured. Before the contract signing between Google and Twitch, the negotiations did not work out well due to which Google had to step out of the deal.

The other obvious question that is ripe in the market is why Amazon, the e-commerce giant, is interested in joining hands with a gaming major???

The acquisition of Twitch would aid in keeping the gaming product basket ahead of its competitors, since Twitch is wildly popular in the gaming community and Amazon getting in the driver’s seat will leave no stone unturned to use the Twitch platform and bolster its whole range of gaming products ahead of its peers. According to the gaming world, the gaming consoles which come from the Amazon assembly line are half-hearted and not up to the modern day gaming status. But Amazon has already made a number of strategic gaming acquisitions over the last few months in order to win the hearts and souls of the gaming world inhabitants. To name a few – Double Helix, the studio best known for the 2013 Killer Instinct reboot on the Xbox One, was snatched up in February. Kim Swift (Portal) and Clint Hocking (Far Cry 2, Splinter Cell) are now all under the Amazon umbrella. With this ultimate move of acquiring Twitch, the platform king of the gaming world, Amazon has stepped on the gas and is certainly on the roll to zoom ahead of its competitors.

Though the acquisition would not affect the current Twitch platform users like Xbox One, PS4 and PC gamers in streaming game play, but this new business move will certainly bring forth a wave of changes in the world of gaming business. Until now gaming world giants like Sony and Microsoft have been relying on the Twitch platform heavily in order to give live gaming experience to gamers across the globe, but after this acquisition they would not really count on their competitor Amazon to provide the streaming service for their gaming gadget line. This will give the current peers of Twitch, like Hitbox, more focus from the other gaming production giants.

Concluding note

As Amazon and Twitch tie the knot and the subsequent business outcome of this union follows, Amazon will gradually make a mark in the gaming world where it still does not have enough foothold. Amazon’s move to acquire Twitch seems to be a “stitch in time” when competition is looming large in the gaming segment. Let’s keep our eyes on the ultimate effect of this new acquisition which is bound to benefit Amazon in the long run.

About the author:

We are a group of analysts exploring and analyzing different domains of business and writing reviews based on information available in public domain web portals. We do not hold any stock or investment position in any of the companies that we write for.

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by reports.droy

User Generated Screeners

HOLKLSUSmall-Mid Cap Group Defensive
schwanz.jeremyRule 1 S
maggers78Copper Names
dwilsherRoc greenatt
dwilsherRoc green blatt
pacmanhunterDiv Yield Stocks with market c
HOLKLSUTest First Group Q1 Trending 2
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat