Amazon recently announced that it was acquiring video game streaming site Twitch.tv for $970 million. For months, it looked like it was a done deal for Google to buy Twitch for about $1 billion. So what happened? Reports suggest Google was concerned about antitrust issues, because Google already owns YouTube, which competes directly with Twitch for live video game streams. Google’s loss is Amazon’s gain, however, as Twitch’s popularity has exploded over the past year. Both Microsoft’s Xbox One and Sony’s PlayStation 4 include the option to broadcast any game you’re playing with a single tap of a button, helping Twitch reach 50 million video game fans around the world each month. Amazon’s acquisition proves the company is serious about its new focus on gaming. Amazon created an in-house video game studio two years ago and has made a couple of other high-profile acquisitions and hires to bolster its video game staff. The move is also great for Twitch and its users, as Amazon’s infrastructure will be far more able to handle Twitch’s explosive growth.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications, co-founder of Metacademy, and the CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and CNBC and writes a popular daily business blog. He’s the Co-Host of the award-winning podcast Techstream with Shelly Palmer & Seth Everett and his latest book, Blockchain - Cryptocurrency, NFTs & Smart Contracts: An executive guide to the world of decentralized finance, is an Amazon #1 Bestseller. Follow @shellypalmer or visit shellypalmer.com.