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Amazon buys Twitch

posted Aug 26, 2014, 10:24 AM by Barny CK
E-retail giant Amazon is purchasing live game streaming video platform Twitch for US$970 million. The purchase has stunned the tech industry when just earlier this month, Google and Twitch were in a late-stage acquisition talk. Twitch, formerly known as and a spin-off from Youtube-like platform, was launched in 2011 for the gaming community to stream and share live game play throughs. The site have since amassed over 55 million unique monthly users. Internet traffic to it is also massive, trailing just behind Netflix, Google and Apple in peak internet traffic. For the record, social media Facebook is at 6th place. Twitch CEO Emmett Shear said they choose Amazon because Amazon believe in their community, values and long-term vision. He also said Twitch will mostly operate independently after the acquisition. The acquisition is widely seen as a good match for both Amazon and Twitch. Although initially in talks with Google, analyst say Twitch's switch to Amazon could be seen as an attempt not to play second fiddle to Youtube, another acquisition of Google. For Amazon's part, the retail giant is recently seen making forays into new markets, having launched its own brand of smartphone. The taking of Twitch could help put Amazon in the online video streaming business.