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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