Amazon is buying video service Twitch Interactive Inc. for more than $1 billion, adding an
online gathering place for video gamers, people with knowledge of the plans said. Amazon
moved in to buy Twitch after the startup’s deal with Google Inc. fell through, said the people,
who asked not to be be identified because the talks are private. An announcement for an
acquisition for about $1.1 billion could be made as soon today, one person said. With Twitch,
Amazon would gain an online forum of 45 million monthly active users, where people discuss
games or watch other gamers as they play. The deal highlights the stepped up rivalry between
Amazon and Google. In addition to battling for customers watching an increasing amount of
video through the Internet, the two companies also are competing for business in online data
storage and Internet advertising. Twitch is available on Sony Corp.’s PlayStation 4 and Microsoft
Corp.’s Xbox One game consoles.Google and Twitch were in talks earlier this year on a transaction
that could value Twitch at about $1 billion, a person familiar with discussions said in May. The
deal shows the increased interest in platforms for hosting online video. Walt Disney Co.’s recent
agreement to purchase Maker Studios for as much as $950 million has set off a scramble among
well-capitalized companies to invest in or acquire online video companies that have a large viewer base.
Twitch, started about seven years ago as Justin.tv, has a highly engaged audience of people who
watch others play video games. In February, 1 million people shared videos via Twitch. The company
raised $20 million from investors last year.
Source: Bloomberg news