It was highly unexpected and there wasn’t even a rumor about such an acquisition. We knew Twitch was going to ‘the big money’, but everybody thought that the money was going to be Google’s. Amazon wasn’t even in the picture ever since rumors of Twitch’s acquisition started appearing on teh netz. But believe it or not, it is Amazon and not Google who has agreed to buy Twitch for nearly $970 million. A hefty sum, people, though I was kinda hoping that Twitch would rake in billions for it has a huge potential market, but maybe that’s the reason they didn’t get a billion or more. Potential, and not existing market.
Twitch’s public release does not cite a figure, whereas Amazon’s press release gives a figure of ‘approximately $970 million in cash‘. The acquisition has received the blessings of Twitch’s shareholders, which will help Amazon in acquiring all of the outstanding shares of Twitch.
Alright, let’s talk about Google now. No official statement from Google has been released about this acquisition or their ‘previous interest’ in acquiring Twitch, but some media outlets do claim that Google got cold feet for the fear of anti-trust litigation, as it already is a major force in the video-streaming market, and had it acquired Twitch, it would have enjoyed a near monopoly in the ‘vidz-biz’.
Is it just me or is Amazon really going out of its way to prove its might this year? I mean, look at everything they have done since this year began: they launched Fire Phone with sweet specifications, they put $2 billion in their Indian subsidiary (read more here) last month, then we heard about their apparent interest in ad-market and alleged competition with Google over the largest share of the ad-pie, their much publicized feud with a French publisher and finally, a marketplace for 3D printed goods!
Woah! That’s some serious dough spending right there.
Now Amazon is entering into the video-streaming market, and for the first time, Google is going to face some serious competition for its crown jewel, YouTube.
We know how Amazon generates revenue. It’s all about advertising, and no matter where and how they place ads, Amazon makes sure that sooner or later, people ‘use’ those ads the way Amazon wants them to.
So, will they start selling their products on Twitch as well? Hmm, I don’t want to say anything, but an article which one of our team wrote a few days ago over here might explain how Amazon uses the candy it buys.
It sure seems like Amazon’s Goliath can’t be stopped by anyone’s David in the foreseeable future, but all the hope is not lost yet, for innovation occurs every day and in the field of technology, revolution happens every second.