Amazon, Not Google, to Acquire Twitch

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3Q 2014 | IN-1020063

Twitch Bought for US$970 Million


In an unexpected move, Amazon, not Google, will acquire Twitch for US$970 million (deal expected to close in 2014). In a previous ABI Insight, “Google (YouTube) Expected to Acquire Twitch for US$1 Billion,” we contemplated what a Google/YouTube acquisition of Twitch might look like, but if speculation proves true, the possibility of antitrust issues (and the inability to agree on a breakup fee) might have ended that deal. On the surface, Twitch might not seem as perfect a fit for Amazon as it did for Google. The latter operates the largest UGC video service in the world (YouTube), and the rumored launch of premium music services on YouTube seemed like a perfect opportunity to bring Twitch's live video model for gaming to budding musicians and anyone wishing to share his/her song. But what could Amazon gain from acquiring Twitch?

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