Times of Oman
Nov 30, 2015 LAST UPDATED AT 07:37 PM GMT
Amazon to acquire videogame platform
August 26, 2014 | 12:00 AM

 Los Angeles: United States online retail giant Amazon has bolstered its Internet video presence, whistling past Google to snatch up Twitch and its huge audience for live-streamed gaming.

The acquisition, announced on Monday, is one of the largest in Amazon's history: $970 million in cash for the three-year-old Internet company. The costliest takeover by Jeff Bezos's group was online shoe store Zappos, valued at $1.2 billion in 2009 but partly in shares.

"Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month," said Jeff Bezos, Amazon's founder and chief executive.

"Like Twitch, we obsess over customers and like to think differently, and we look forward to learning from them and helping them move even faster to build new services for the gaming community."

The San Francisco-based Twitch Interactive streams games being played for non-playing viewers to watch, and hosts gaming events. It allows viewers to chat with the players and others, lending it some of the qualities of social networking websites, and it sells advertising to generate income.

The company claims more than 55 million visitors a month to its website, via desktop computers, tablets and smartphones, and more than one million 'broadcasters', gamers who stream video of their games over the Internet via Twitch.

It also says that visitors log long periods on the website, averaging 106 minutes a day per person, putting it in the leagues of streaming video like Netflix. In July viewers booked 15 billion minutes.

In a sign of its rising star in the sector, Take-Two Interactive, the company behind the wildly popular videogame Grand Theft Auto V, participated along with several investment firms in Twitch's last financing round in September.

Twitch also benefits from the integration of the latest versions of the world's two best-selling consoles, Sony's PlayStation 4 and Microsoft's Xbox One, allowing gamers to easily play online.

Subscribe to our newsletter and be the first to know all the latest news