It is reported that Amazon.com Inc. and Twitch Interactive Inc. have reached an agreement for purchase. Amazon is going to acquire Twitch Interactive after talks between Twitch and Google has fallen apart.
What is Twitch Interactive?
At peak times Twitch can account for up to 2% of the total traffic on the Internet. Twitch was spun off from streaming platform Justin.tv in June 2011; the website focuses on live-streaming of video game content. An estimated 55 million people use Twitch to stream games such as League of Legends, Call of Duty, Minecraft, Diablo, and World of Warcraft.
Amazon will pay $970 million in cash for Twitch.tv and if certain performance bonuses are met, the amount can increase to as much as $1.1 billion.
Gamers can stream on the website through computer, as well as consoles such as the Playstation 4 and Xbox One. Twitch says that people watch more than 16 billion minutes of its videos each month, and more than 1.1 million unique broadcasters use Twitch as a platform to stream video.
With Amazon announcing earlier in the day that it plans on taking on Google in the Internet advertising realm, this should definitely help them get on their way.