Amazon.com, Inc. (NASDAQ:AMZN) has announced that it is going to buy videogame streaming service Twitch. Discussing this acquisition in a program on Bloomberg, Tom Giles and Cory Johnson said that this is a very smart move from Amazon as the content business is growing worldwide and streaming services will give Amazon.com, Inc. (NASDAQ:AMZN) a great boost in the industry.
Tom Giles said that millions of people want to just watch other people playing videogames and Amazon has ceased this user base from this move. He thinks that Google Inc (NASDAQ:GOOGL) will not be much worried out this acquisition because it has already its video platform in the form of YouTube.
“[…] $970 million, not a lot of money for Jeff Bezos who has shown his, demonstrated his willingness to spend lots of money on investing for the future of Amazon.com, Inc. (NASDAQ:AMZN). $970 million, not a lot of money, he is getting eyeballs and getting people who are engaged, who just want to watch each other play games, and while they are on it guess what, Jeff Bezos can sell them stuff on Amazon.com, Inc. (NASDAQ:AMZN),” said Giles.
Cory Johnson said that the real benefit of game streaming is the fact that the company does not need to invest in creating the content. The videogame streaming services are getting content from thousands of gamers worldwide and it’s the customer base that decides what will be next big hit. This helps in saving the cost of content and services and enabling the users to orient the trend as they like. He thinks that Amazon.com, Inc. (NASDAQ:AMZN) has been building a huge ads business and it can use Twitch as another tool to expand its ads revenue
Ken Fisher‘s Fisher Asset Management is one of the biggest shareholders of Amazon.com, Inc. (NASDAQ:AMZN), having about 2.47 million shares of the company.
Disclosure: None
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