Earlier this week, Amazon.com, Inc. (NASDAQ:AMZN) announced the acquisition of live-streaming service provider Twitch for a sum of $970 million in cash. This acquisition indicated the intention of the e-commerce giant to grow in the live streaming business. BMO Capital markets analyst Edward Williams talked on CNBC about the Amazon’s acquisition of Twitch.
Twitch is currently the world’s leading platform for gamers. They have around 50 million subscribers every month, who gather to broadcast, chat and view different types of games. Williams said that Amazon.com, Inc. (NASDAQ:AMZN) might be able to expand in the gaming protocols through this acquisition. He added that they would love to leverage the online streaming aspect of the Twitch for their video streaming plans.
“[…] I don’t think it necessarily have to go together. […] What Amazon tries to do is to engage with their consumer as frequently as they can. I think Twitch certainly will help them to engage with the consumers on more frequent basis,” Williams said about running Twitch and e-Commerce business together.
There was a fear circling around the Twitch that Jeff Bezos, CEO of Amazon might just abandon the employees of Twitch. Williams said that Bezos will have some influence on operations of the Twitch. He was pretty sure that Bezos might not engage in an acquisition of a bigger volume without a vision in his mind.
Amazon.com, Inc. (NASDAQ:AMZN) was criticized in the past for expanding the business in variety of unexplored areas. This new acquisition might fuel those criticisms further and some suspect that shareholders might rise flag against this acquisition, which was completed with full cash. Williams said that the shareholder of Amazon have a great belief in the company’s management and its decisions. He added that he does not expect any flags against this acquisition from the shareholders of the company. He thinks that expanding in multiple businesses would influence the top line growth of the company, which would make shareholders and investors happy.
One of the shareholders of Amazon.com, Inc. (NASDAQ:AMZN) is Fisher Asset Management, led by Ken Fisher. They hold around 2.5 million shares of the company.