FULL DISCLOSURE: I own stock in both GOOG and AMZN I didn't see a post in /r/finance about Amazon and Twitch striking a deal. At first we heard Google was looking, so I suppose Twitch went out and found other possible buyers.
Anyhow, at first the deal struck me as odd. Google would be a very good match for twitch. Amazon, however, isn't a gaming/search/social site. Quite honestly, any time I go to Amazon, I spend money. Only once in a while does Google get a buck directly from my pocket (Chromecast, maybe a song or two. Rarely an App). Another full disclosure: When I visited Google physically in Mt. View, CA, I bought a hat, a mug, and some stickers from their gift store.
Now, after searching reddit for Amazon/Twitch deal, and slightly breezing through the other /r/ sites, I can see that Amazon made a wise choice. Twitch gets a gamer / video-er / sharer market that is unlike any other social network I know of. The fan base is fierce and loyal. Some like this deal, some do not.
From an investment standpoint, I can see Amazon making their money back from this deal within 5 years. Maybe sooner. As long as management at Amazon is diligent to assure the twitch community that nothing is changing, doesn't change twitch, and listens to the twitch community, they will have a loyal customer base; because that is what they bought.
Handling this type of acquisition inside Amazon may strain management in the beginning, and new talent will surely need to be brought in. Finding synergies is fine, as long as the goal is to grow the customer base instead of the bottom line. If Amazon starts making major changes to twitch, this will fail.
All in all, though, I think it can be a good match. The technology is there. The customer base is there. The twitch brand is there (thank you twitchplayspokemon). The logistics are there (does twitch need logistics?).
Did Google lose out? Does it even matter asking that question? In the old world of sneaky business, accountants, finance guys, boats, hos, and lawyers, one could argue that Google did due diligence and deemed twitch an egg; but made an offer to sucker a competitor in to the buy. I highly doubt that since the twitch fan base is really appealing. Besides, Google's mission statement is "Do no evil" (or something like that)
Please share your thoughts on this.
Submitted August 30, 2014 at 12:12AM by bk15dcx http://ift.tt/1qPD7NT
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