Dragni Dragnev

It Is Amazon.com, Inc. (NASDAQ:AMZN) That Is Buying Twitch, Not Google

by Dragni Dragnev August 26, 2014

Yesterday it was confirmed that Amazon.com, Inc. (NASDAQ:AMZN, AMZN message board) is to acquire Twitch for nearly a billion dollars at some point in 2014.

Needless to say, the news was cause for much excitement, and more than a little confusion. Up until recently, reports indicated that Google Inc. (NASDAQ:GOOGL) had arranged to acquire Twitch for pretty much the same amount of money. However, it now turns out that that AMZN, not GOOGL, is in late-stage talks with the company providing livestreaming service, and the transaction could occur any day now - even as soon as tomorrow!

Obviously, AMZN has decided to capitalize on that new, trendy and “booming” market like it has done on so many others. Its expansion on yet another technological front with a lot of potential is not really surprising for anyone who's kept an eye on the company. It's just what AMZN does – try really hard to carve itself a niche on every market with new and cool products and services.

Some analysts and investors see that as accumulating potential for greatness. Others – as the company stretching its resources dangerously thin. At this point in time, no one could say for sure who's right and who's wrong, but one thing is certain. Amazon founder Jeff Bezos is right in saying that “Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month".

Streaming does, indeed, have great potential. And with AMZN's experience and resources, that potential could be fully realized.

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