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Amazon Buys Twitch

A Letter from the CEO on the Twitch website announces the streaming video service is being purchased by Amazon for a reported $970 million. This contradicts reports as recent as last month that "confirmed" Google was acquiring Twitch (thanks Rahul). Here's word from CEO Emmett Shear:

Today, I’m pleased to announce we’ve been acquired by Amazon. We chose Amazon because they believe in our community, they share our values and long-term vision, and they want to help us get there faster. We’re keeping most everything the same: our office, our employees, our brand, and most importantly our independence. But with Amazon’s support we’ll have the resources to bring you an even better Twitch.

I personally want to thank you, each and every member of the Twitch community, for what you’ve created. Thank you for putting your faith in us. Thank you for sticking with us through growing pains and stumbles. Thank you for bringing your very best to us and sharing it with the world. Thank you, from a group of gamers who never dreamed they’d get to help shape the face of the industry that we love so much.

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40 Replies. 2 pages. Viewing page 1.
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40. Re: Amazon Buys Twitch Aug 29, 2014, 23:08 Flatline
 
jdreyer wrote on Aug 25, 2014, 19:11:
Cutter wrote on Aug 25, 2014, 17:35:
Why would they pay a billion dollars for something no one has ever heard of? More importantly they could have done it themselves for a few million.

I've heard of it of course, but rarely used it. I watched a guy draw a webcomic on it last year. Maybe it's all the rage with the kids these days?

If "the coming thing" is for people to *watch* other people play video games because they suck even at that, our culture is fucking doomed.
 
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39. Re: Amazon Buys Twitch Aug 27, 2014, 03:57 Fantaz
 
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
Rofl, 970 million. The human race is insane.

What would you even do with almost a billion dollars? Besides pay (assuming you don't abuse some insane loopholes) a lot of taxes. That almost defeats the purpose of most human existence.

that's a crazy amount of money for some online streaming video website with a silly live chat.
 
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38. Re: Amazon Buys Twitch Aug 26, 2014, 22:22 killer_roach
 
Creston wrote on Aug 25, 2014, 23:34:
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Well, half of that goes to the gubmint straight away.

Corporations are taxed on profit. As a result, Amazon doesn't pay much of anything in taxes.

Regarding their warehouses (in a subsequent comment of yours) - they actually lease them through a contracted builder rather than pay for their construction themselves. Allows them to spread out the cost over a near-indefinite period of time.
 
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37. Re: Amazon Buys Twitch Aug 26, 2014, 13:13 MoreLuckThanSkill
 
Frijoles wrote on Aug 25, 2014, 23:56:
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Two chicks at the same time, man.

Not a terrible idea, but I know for a fact that costs significantly less than a billion dollars, and depending on location/quality, may be had for free.
 
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36. Re: Amazon Buys Twitch Aug 26, 2014, 13:06 Nullity
 
Primalchrome wrote on Aug 25, 2014, 17:25:
Great. There goes my last hope of getting to ChromeCast Twitch streams to my plasma. Sigh.
I'm also confused as to why they have not yet add Chromecast support to their app. In any case, the third-party Twitch app Lakitu DOES support Chromecast, and works pretty well.
 
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35. Re: Amazon Buys Twitch Aug 26, 2014, 12:58 Creston
 
Frijoles wrote on Aug 25, 2014, 23:56:
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Two chicks at the same time, man.

You win.
 
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34. Re: Amazon Buys Twitch Aug 26, 2014, 12:57 jdreyer
 
Task wrote on Aug 26, 2014, 09:45:
We are going to have The USA is run by Mega-Corporations some day today just like in Deus Ex. Companies will just keep buying up other companies in the Great Recession.

Fixed that.
 
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"Microsoft is the absent minded parent of PC gaming" - Verno
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33. Re: Amazon Buys Twitch Aug 26, 2014, 09:45 Task
 
We are going to have Mega-Corporations some day just like in Deus Ex. Companies will just keep buying up other companies in the Great Recession.  
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Playing: The Witcher 2, Dragon Age: Origins, FF8
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32. Re: Amazon Buys Twitch Aug 26, 2014, 03:02 Cyanotetyphas
 
Creston wrote on Aug 25, 2014, 23:34:
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Well, half of that goes to the gubmint straight away.

Only if you have the world's worst accountant. Most of that is getting taxed at 15%.
 
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31. Re: Amazon Buys Twitch Aug 26, 2014, 00:23 EricFate
 
killer_roach wrote on Aug 25, 2014, 21:32:
Gipson wrote on Aug 25, 2014, 19:38:
i'm also Amazon > Google
grats to Twitch.

Well, that plus they were far less likely to get nailed with an antitrust suit.
 
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30. Re: Amazon Buys Twitch Aug 26, 2014, 00:01 Jivaro
 
Frijoles wrote on Aug 25, 2014, 23:56:
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Two chicks at the same time, man.

Sometimes, it really is the simple things in life that make us happy.
 
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29. Re: Amazon Buys Twitch Aug 25, 2014, 23:56 Frijoles
 
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Two chicks at the same time, man.
 
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28. Re: Amazon Buys Twitch Aug 25, 2014, 23:34 Creston
 
MoreLuckThanSkill wrote on Aug 25, 2014, 21:37:
What would you even do with almost a billion dollars?

Well, half of that goes to the gubmint straight away.
 
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27. Re: Amazon Buys Twitch Aug 25, 2014, 23:29 Creston
 
Mashiki Amiketo wrote on Aug 25, 2014, 20:44:
You know, if you're in the red you're losing money faster than you can make it.

This is a big corporation, not your weekly grocery budget. They are in the red continuously because they keep expanding their business. Like Beamer said, they basically put every dollar straight back in the company.

What happens when Amazon builds new warehouses worth over a billion dollars? They amortize them over five years, and that's 200 million dollars per year they can write off against their revenue. (And they invest a lot more than that into infrastructure each year.)

Those are the kind of things why they're in the red. Amazon is making enormous revenues, and if they chose to just sit on them rather that continuously reinvesting them to make themselves bigger and stronger, they'd make quite a bit of profit.

What they're doing is spending money they don't have on the basis that it will be leveraged against future earnings, which is a terrible way to run a business.

Yeah, that's not what they're doing. They had 75 BILLION dollars in revenue last year. The idea that they have no money is laughable.

Now, they could be tapping into a vast backup reserve, but that's not ever mentioned.

What would you call investors then, if not a vast backup reserve? And again, most of the money Amazon spends is from revenue. 75 billion dollars worth.

That said, while investors have been fine with Amazon continuously reinvesting and being in the red, it seems some of them are starting to feel that Amazon needs to focus on profits a little more, or at least stop putting so much money in what they see as ancillary business.

 
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26. Re: Amazon Buys Twitch Aug 25, 2014, 23:18 Creston
 
Err, so what happened to the Google buyout then?
 
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25. Re: Amazon Buys Twitch Aug 25, 2014, 23:16 LittleMe
 
Yeah Amazon > Google here. Awesome. I hope Twitch can get a lot more bandwidth soon, too. This should help fund it. Their network is pushed to the limit too often (seems that way anyway).

 
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24. Re: Amazon Buys Twitch Aug 25, 2014, 21:37 MoreLuckThanSkill
 
Rofl, 970 million. The human race is insane.

What would you even do with almost a billion dollars? Besides pay (assuming you don't abuse some insane loopholes) a lot of taxes. That almost defeats the purpose of most human existence.
 
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23. Re: Amazon Buys Twitch Aug 25, 2014, 21:32 killer_roach
 
Gipson wrote on Aug 25, 2014, 19:38:
i'm also Amazon > Google
grats to Twitch.

From what I'm reading, the reason Amazon won out over Google was their interest in keeping Twitch as an autonomously-run entity. Twitch's leadership and headquarters stays just the way it is, and that likely won out over what plans Google had.
 
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22. Re: Amazon Buys Twitch Aug 25, 2014, 21:08 Beamer
 
Mashiki Amiketo wrote on Aug 25, 2014, 20:44:
Beamer wrote on Aug 25, 2014, 17:40:
That's why they're in the red. They make money, but immediately put it right back into the company. Every dollar is spent as soon as it's made. But their terms with most vendors are to not pay them until 30-90 days after that dollar is earned, giving them a nice window to make the dollar, spend the dollar, then get the dollar back.

You know, if you're in the red you're losing money faster than you can make it. What they're doing is spending money they don't have on the basis that it will be leveraged against future earnings, which is a terrible way to run a business. Now, they could be tapping into a vast backup reserve, but that's not ever mentioned.

But they're not losing money faster than they're making it.
http://ycharts.com/companies/AMZN/profit_margin

7 negative quarters since 2002.
They just have very, very small profit margins, mostly due to enormous capital investments into growth.
 
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21. No subject Aug 25, 2014, 20:44 Mashiki Amiketo
 
Beamer wrote on Aug 25, 2014, 17:40:
That's why they're in the red. They make money, but immediately put it right back into the company. Every dollar is spent as soon as it's made. But their terms with most vendors are to not pay them until 30-90 days after that dollar is earned, giving them a nice window to make the dollar, spend the dollar, then get the dollar back.

You know, if you're in the red you're losing money faster than you can make it. What they're doing is spending money they don't have on the basis that it will be leveraged against future earnings, which is a terrible way to run a business. Now, they could be tapping into a vast backup reserve, but that's not ever mentioned.
 
--
"For every human problem,
there is a neat, simple solution;
and it is always wrong."
--H.L. Mencken
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