Home » FINANCE » Google Fails, Amazon Snatches Gaming Giant Twitch with $970 Million Cash

Google Fails, Amazon Snatches Gaming Giant Twitch with $970 Million Cash

Global online giant Amazon.com has snatched live-streaming gaming network Twitch Interactive for $970 million in cash, making it the largest deal by the US e-commerce company that too when Google was in the race, though the search giant was as usual silent about its name being dragged into the issue.

Amazon Chief Executive Officer Jeff Bezos’s move to acquire Twitch reflects his resolve to transform Amazon into an Internet destination beyond its core online e-commerce and retail operations with an eye on the fast-growing world of online gaming, which accounts for more than 75 percent of all mobile app sales.

Since the acquisition involves some retentions, the entire deal may cost Amazon $1 billion, reported Reuters quoting a source close to the deal. The report quoted Macquarie Research analyst Ben Schachter who said in a note: "Twitch will further push Amazon into the gaming community while also helping it with video and advertising."

Twitch provides platofrm and format to allow viewers send messages to other players and interact with each other during live play and it is growing as one of the most-required elements of digital video streaming, that has more advertising dollars than any other segment. The deal is expected to close by the end of 2014.

In an interview, Twitch Chief Executive Officer Emmett Shear said the startup contacted Amazon because its deep pockets and ad sales expertise. "The reason why we reached out to Amazon, the reason I thought working for Amazon, having Twitch being a part of Amazon, would be a great idea for us (as) they would give us the resources to pursue these things that we honestly already want to pursue and they’d let us do it faster," Shear said.

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