75% of all mobile apps are gaming related. So its no surprise that Twitch Interactive, the worlds leading video platform for gaming nuts has been snapped up by buying Giant Amazon, for $970 million US cash.
Broadcasting live from a mobile to Twitch became a reality for the gaming community in July this year through the NVIDIA shield tablet (available through Amazon at a mere $299 US).
The Amazon deal will ultimately go over the $1 billion dollar mark due to retention agreements and beats out another giant Google who had also expressed interest in Twitch. Twitch has been a big hit with the gamers which allows players to message, watch & broadcast each other during game play and boasts 50 million game players to the platform per month.
However for Amazon it signals a further move to extend its portfolio outside of its core market. Its highly likely the acquisition will see Amazon integrate the gaming platform into its already existing products such as the Kindle, Amazon video and Amazons TV set-top box. Twitch has been a highly attractive company to many big technology companies. In just 3 years its the fourth US producer of peak internet. To put in perspective Twitch beats Hulu and Facebook. And with Brands estimated to spend $6 billion on digital video this year alone, twitch ties in nicely with Amazons plan of competing with Google adwords & video ads. Unlike Youtube however, Twitch is live and ads appear during the broadcast not (like youtube) on recorded shows only. Twitch has been using the real time advertising concept and the benefits of advertising real time is that in a surge of viewership, marketers can inject their ads directly into the video feed.
Amazon stocks rose steeply on the announcement of the acquisition.
Information supplied via Reuters