Tuesday, August 26, 2014
Shortly after the market close a murmur goes through the ranks of the merchant: Amazon takes on a video site for gamers and puts it close to a billion dollars on the table. According to industry insiders, it’s about the future of digital business.
In the United States continues the series of spectacular acquisitions continued: The online retailer Amazon offers a billion dollar video site Twitch.tv. There, fans of popular computer games live recordings can publish to the game. The streaming service came last to around 55 million users. About one million of these are active published videos on the net, the rest looks to and uses Twitch as an online medium with video contributions from the gaming world.
The interest in games turns by buying on Wall Street for cash money The US-based branches of the takeover a hefty sum from the ongoing operation from – even though Amazon had reported a net loss of approximately $ 126 million in the quarter. The purchase price lies at approximately $ 970 million in cash, Amazon announced after U.S. market close. Shortly before the stock with a slight premium of just 0.7 to $ 333.82 from the market was gone.
For Amazon’s acquisition of Twitch is one of the largest acquisitions ever. The business also underlines the ambitions of CEO Jeff Bezos, to be on the ancestral trading business also become a major attraction in the network. For this purpose the company is investing heavily in its own TV and games offers. “It’s clear that Amazon wants to raise more content that can control it,” said James McQuivey of Forrester analyst firm. Twitch adapt well to this strategy.
Google loses out
rumors of a possible takeover of Twitch circulated on the market already since May. As a likely buyer of the search engine providers and advertising sales company Google had acted first, however. The Internet Group with its wide-reaching video platform Youtube but I held back with a view to possible problems with competition watchdogs, told the magazine “Forbes”.More on the topic
The “Wall Street Journal” had already reported earlier this week a few hours before confirming the twitch takeover by Amazon of an alleged purchase price of more than $ 1 billion. In the online service “The Information”, which gave the name of Amazon first as a buyer, it was said that Google wanted to pay about a billion dollars.
Amazon moves to the target group ran
Twitch was started three years ago rather than niche service. The service rapidly gained popularity especially among young Internet users. On the website allows registered viewers watched live games shown and communicate with one another with other viewers as well as the players themselves. The high interest in the service gives the company more and more advertising revenue a.
The acquisition Amazon strengthens its position in the competition for younger population and brings himself According to industry insiders, above all, as a serious competitor to Google in position. According to media reports, the online retailer will soon also start its own system for marketing of digital advertisements on the Internet. Amazon also runs a private business with online games based on the Android operating system.