Amazon outbids YouTube, buys video game platform Twitch for $970M

Global Business

Amazon outbids YouTube, buys video game platform Twitch for $970M

The biggest tech deal of the past few weeks was surprising for many reasons. It involves the purchase of a company best known for allowing gamers to sit at home and broadcast their video game playing feats. Twitch was purchased by Amazon for $970 million. CCTV’s Mark Niu reports.

More than a million independent broadcasters display their video game-playing prowess on Twitch. Twitch’s peak internet traffic surpasses even Facebook and Amazon. That did not go unnoticed, as Amazon moved in with not only a $970 million cash offer, but also an attractive business arrangement.

While its early days on how the two parties will cooperate, Twitch says it doesn’t not envision a lot of user data swapping.

Twitch believes it still has plenty of room for growth, especially in mobile gaming.

Chief Operating officer Kevin Lin says virtual reality is another technology that presents many challenges for the Twitch platform, but also many opportunities.

With Amazon’s reach into so many areas means, Twitch admits that at times the two may indirectly be competing against each other.

Shear says that’s not problem because Twitch was attracted to Amazon based on the belief that what’s best for the consumers ultimately is best for the company.