Dive Brief:
- Streaming video game portal Twitch announced Monday it had signed a deal to be acquired by Amazon for $970 million.
- The announcement was a bit of a surprise because YouTube—which is owned by Google— had been reportedly courting Twitch since May.
- Twitch — which brings in 55 million unique visitors each month— will remain mostly autonomous from Amazon, but will now have access to the retail giant's resources.
Dive Insight:
Amazon seems to making a play to compete more directly with Google as of late. Just recently, Amazon revealed its plans to build a 'Sponsored Links' platform that has potential to rival Google AdWords. Not to mention, the acquisition of Twitch could be seen as a power play. Either way, Amazon is carving a serious path outside of retail.
