Amazon to buy Twitch for $1.9B
Amazon (AMZN) is set to acquire the streaming video service Twitch for more than $1 billion, sources familiar with the matter said Tuesday.
The acquisition would add Amazon’s video streaming service to its growing portfolio of online video services, including Amazon Video, Amazon Prime Video, Prime Music, and Prime Video.
The deal is expected to close in the first half of 2020, a source familiar with its development told The Wall Street Journal.
Amazon is also planning to invest in gaming, which is a $3 billion opportunity, according to one source familiar to the matter.
The sale is subject to regulatory approval, the source said.
The Amazon acquisition would give the company control over video streaming and gaming, and potentially other business activities, the Journal reported.
The Wall St. Journal reported in March that Amazon would purchase Twitch, which makes its own video streaming software and services.
It also said the deal was a “transformative” development for the video streaming company.
The Journal said the Twitch deal, if completed, would bring Amazon video to more than 1 billion monthly active users and will give Amazon video the largest market share in the industry.
The Twitch deal is likely to be a major boost to Amazon’s streaming video business, which has struggled since launching the original Twitch service in 2014.
Amazon has been expanding its video platform to include video-on-demand (VOD) services, where users can watch video streams on the web or on mobile devices.
Amazon said its VOD business grew from $5.5 billion in 2015 to $14.3 billion in 2020, with video-onset sales up $1 trillion over the same period.
Last year, Amazon said it would add about 20 million VOD customers over the next five years.
The company has also launched Amazon Prime video service.