Amazon Expands to Gaming Business

TEMPO.CO, Jakarta - Digital books and online superstore retail company Amazon, has cashed out up to US$970 million to acquire online streaming video game provider Twitch Interactive Inc. With the acquisition, Amazon has managed to defeat Google and YouTube who also aims to acquire Twitch.

The decision also displayed Amazon CEO Jeff Bezos' determination to expand their business outside of retail operations. Claimed to be the largest purchase made by Amazon in the last 20 years, the acquisition will increase the company's competitiveness against Apple Inc. and Google Inc. in the field of online video games, "which contributes more than 75 percent from the total sales of mobile applications," as Jeff Stated on Wednesday, August 27, 2014.

Ben Schachter, an analyst from Macquarie predicted that Twitch will soon push Amazon to enter the gaming community. "They will also assist with videos and commercials," said Schachter. Last July, more than 55 million visitors viewed more than 15 billion content in Twitch.

Twitch CEO Emmett Shear said in an interview that they called Amazon because they know the company can help boost Twitch's commercial sales. "Their expertise in advertisement makes it possible to pursue a strategic goal faster," he said. By being part of Amazon, Twitch will be able to attain the company's goals faster. A number of online video games in Twitch already has a link to it in Amazon.

REUTERS | TRI ARTINING PUTRI