Tag Archives: Acquisition

Twitch Has Acquired GoodGame To Make Pro Partnerships More Appealing

Video-game-streaming service Twitch just announced that it will acquire GoodGame, a full-service agency dedicated to serving the needs to pro-gamers and brands looking to be involved in the eSports industry.

GoodGame has built a business over the last 10 years by sponsoring its own competitive esports teams, connecting brands with popular third-party teams, creating viral content for brands looking to market to gaming enthusiasts, and more.

“We’ve been responsible for funneling more than $10 million toward players, teams, tournaments, and other parts of the esports ecosystem,” writes GoodGames CEO Alex Garfield in a letter on the company’s site explaining the sale.

The move lets Twitch capture more of the value generated by the growing esports industry, which has already been a huge key to its success — on any given day, Twitch regularly has more people watch League of Legends than concurrently watch major news networks.

With GoodGames on its team, Twitch can further ingratiate itself in the business of running teams and getting money to professional gamers. That in turn makes these popular streamers more likely to stick with Twitch when showing off their gaming chops, rather than jumping over to competitors like YouTube or Steam Broadcasting.

It also expands Twitch’s interactions with big brands. While Twitch already makes it very easy for Twitch partners (users with a large number of subscribers) to make money by playing video ads on their streams, there’s likely ample room for Twitch to move up-market in terms of quality and revenue thanks to its huge audience and focus on video content. GoodGame’s team brings with it existing working relationships and an expertise in pitching the gaming audience to companies with big budgets for brand advertising.

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Twitch to Acquire GoodGame

Twitch takes another big step in video game broadcasting and esports by adding more services to its partner program — bringing advertisers new ways to reach this rapidly-growing audience, and providing more revenue opportunities to broadcasters and players

SAN FRANCISCO, CA – December 9th, 2014 – Twitch, the leading video platform for gamers, today announced that it has reached an agreement to acquire GoodGame, the world’s first full-service agency dedicated to the esports and live video game broadcasting communities. Since its inception nearly a decade ago, GoodGame has grown into one of the gaming industry’s most progressive talent and content companies. The acquisition will allow Twitch to harness GoodGame’s unique service package, as well as its staff’s industry expertise and community leadership, in order to offer an even broader array of support and monetization opportunities to the greater Twitch community.

As esports and live video game broadcasting continue to grow at an explosive pace, advertisers have struggled to understand how to most effectively engage and reach this massive audience. GoodGame has helped solve this problem with an arsenal of fresh, non-traditional engagement methods uniquely suited to the ever-evolving digital media audience. This, coupled with its efforts to establish clear standards for reporting and communication of value to sponsors, has allowed GoodGame to succeed at welcoming major sponsors and advertisers into the community.

Under the leadership of its CEO, Alexander Garfield, the company has created a model that keeps players and content creators focused on what they do well while monetizing their work more effectively via advertisements, sponsorships, and merchandising. With GoodGame’s specialized skill set added to Twitch’s already industry-leading partner program, Twitch streamers will soon have even more ways to build their careers as content creators.

“GoodGame has an amazing reputation in the industry for its expertise in both sponsorship sales and talent support. Their passion for helping content creators and pro players achieve success has elevated the entire industry in the minds of brands worldwide,” said Kevin Lin, COO of Twitch. “GoodGame was a natural fit for Twitch because of our shared experience in creating compelling monetization opportunities for content partners and helping sponsors get the most out of their investments. We have worked with GoodGame CEO Alexander Garfield for several years, and there is a clear opportunity for him to bring his skills and experiences to many more of our partners.”

“We view GoodGame as a conduit,” said Alexander Garfield, CEO of GoodGame. “Its purpose is to help support as many players and broadcasters as possible by channeling revenue into our community, and making sure it stays here. I can think of no better way to accomplish that goal than by working hand-in-hand with the very same platform whose passionate audience has essentially built our company. We wouldn’t have made it to where we are today without Twitch and its users – we’re excited to give back.”

About GoodGame
GoodGame is an all-in-one talent and content company focused on gaming and esports. Over the past decade, its staff of industry veterans has worked with teams, represented players, managed tournaments, created content, and brought numerous marquee advertisers into the gaming space. GoodGame prides itself on being community-focused with the goal of supporting as many players and teams as possible by providing new and compelling monetization opportunities. For more information about GoodGame, visit www.goodgame.gg.

About Twitch
Twitch is the world’s leading live video platform and community for gamers where more than 60 million gather every month to watch and talk about video games with more than 1.1 million broadcasters. Twitch’s video platform is the backbone of both live and on-demand distribution for the entire video game ecosystem. This includes game developers, publishers, media outlets, events, user generated content, and the entire esports scene. In February 2014, Twitch was ranked the 4th largest website in terms of peak internet traffic in the U.S., fortifying the brand as an entertainment industry leader and the epicenter of social video for gamers. For more information visit: www.twitch.tv.

Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management’s expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment and data center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, inventory, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

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A Look Into the $1B Acquisition of Twitch by Amazon

Amazon purchased Twitch for $970 million. At the moment, Amazon has a whopping 244 million active users, and Twitch has 55 million active users. For Twitch, this could enlarge their viewership and give them more access to other video game users.

The online gaming company’s popularity and influence has grown rapidly since its debut. In June 2011, the streaming video game platform was born offering users video games and ways to stream other video games. Within a year, Twitch gained 20 million viewers per month, Consumerist reported. By mid-2013, they amassed twice the amount of users: 45 million.

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As of July of this year, Twitch has 55 million users per month. The number of users that they have surpasses that of Netflix with 50 million users. The 55 million streaming video game users have already watched 15 billion minutes of content, Consumerist reported.

Twitch even rivals Hulu. In February of this year, Twitch gained more traffic than the video streaming site Hulu. Twitch’s popularity grew even more when it made deals with Microsoft and Sony to power live streaming on the Xbox One, and the PlayStation 4 consoles, CNET reported.

Amazon and Twitch have already been working together before the acquisition. Twitch shepherds video game purchases with their business partners linking them to product pages like Amazon. This way the online gaming company advertises to gamers, CNET reported.

This merger might be a win-win for both online companies. Amazon has a huge, efficient, and highly scalable web hosting, and cloud streaming operation. Twitch clocks in with 55 million active video game users; the video game crowd is what Amazon has not fully immersed itself in, Consumerist reported. Amazon is branching into digital content, and video game development, having Twitch is a match for both companies.

Shear has made a deal with Amazon that gives the online video game company autonomy from the online shipping giant. If Amazon had 100 percent controlling interest Shear says, “It would destroy what Twitch is,” CNET reported.

“I know it’s the last thing I want and I think it’s the last thing Amazon wants too,” Shear said.

In an interview with Forbes, Shear explained that they were glad to know from Amazon that independence would be worked out.

“You get retained as a fully owned subsidiary. Those kind of symbolic things have a great meaning. It’s different being the senior vice president of the Twitch division versus being the CEO of Twitch, Inc.,” Shear said, Forbes reported

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With Amazon’s acquisition of Twitch the online video gaming company can integrate fully Amazon Web Services (AWS). Shear says that AWS is an “amazing piece of software” which they could integrate into their network, Forbes reported. As a result, Shear says this could make them “the best live video system in the world.”

How do you feel about Amazon buying Twitch? How is that going to affect you?