Why Google Backed Out of Buying Twitch

Why Google Backed Out of Buying Twitch

Twitch

According to inside sources, the "done deal" between Google and Twitch that was discussed earlier this year was far from being done.

As of yesterday, Amazon has officially purchased Twitch for the cozy sum of $970 million. This transaction came as a surprise- not necessarily because no one thought Amazon would be interested in acquiring the streaming site, but because a purchasing deal with Google was supposedly already in the pipeline circa May of this year. Now, in the aftermath of the Amazon buyout, Forbes has helped shed some light on what became of that deal- and why Google had to back away from the table.

Basically, it all boils down to antitrust laws and their goal of regulating non-competitive conduct by companies. Since Google already owns YouTube (which competes with Twitch to broadcast live and recorded video game sessions), it was concerned about potential antitrust issues that could have come with the acquisition. A source close to the deal told Forbes that neither company could come to an agreement on the size of a potential breakup fee in case the deal did not go through.

While others reported that a deal between Twitch and Google was all but set in stone, Bessemer Ventures Partners' Ethan Kurzweil, who led his firm's investment in Twitch and sits on its board, denied that was the case. Despite the fact that Google was one of the first to approach the company about the deal, Kurzweil noted that there were other interested parties involved after Twitch received initial interest from the search giant. BVP led by Kurzweil and David Cowan looked into other possibilities and hired notable Silicon Valley banker Frank Quattrone of Qatalyst Partners to begin acquisition dialogues with other companies.

"A lot of people were interested but Amazon offered the best deal," said Kurzweil, who did not name the other interested parties.

What are your thoughts of Amazon purchasing Twitch? Do you think this bodes well or ill for the streaming site? Share your thoughts in the comments.

Source: Polygon via Forbes

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Is it terrible the only thing i kept thinking of is "Oh, will my Amazon Prime also include Twitch Turbo now?" XD

No, because I'm wondering the exact same thing. :)

i dislike them both now tbh but there has to be a youtube competitor and hopefully Amazon will extend the twitch brand/site in that direction.

Amazon is in an interesting position: They're one of the biggest Internet-based companies out there, but they've spent most of that time just being an online retailer. It's only recently that they've started moving into other markets, and they're still quite an underdog in those fields compared to giants like Google and Apple. So in a way, they're the world's biggest Internet start-up. So far they seem to be handling it non-evilly (they had the first service that offered DRM-free music from major labels, a whole year before Apple), but like any big company, it's only a matter of time before they turn on us.

Steve the Pocket:
So far they seem to be handling it non-evilly

I have one argument to that statement:
Hachette.

You're welcome. If you have any more questions regarding my argument, feel free to discover the wonders of a search engine like Google.

Amazon can suck my posterior for all I care, and my Twitch account will get no more activity now that it's a subsidiary of Amazon. While the loss of my business is negligible, I will have integrity and will NOT have anything to do with Amazon. May they be replaced by someone that doesn't consider themselves above all industries they rely on to market for a living.

I don't see how its going to make much of a difference. They might not use the same content id software as google but they will have to use something like it or they be sued like crazy.

Steve the Pocket:
So far they seem to be handling it non-evilly

Do forgive Ajarat. He/she/it is new. The Hachette in reverence is a book publisher that Amazon was trying to strong-arm into a deal that better favored Amazon. Here's a write-up about the goings on in the New York Times if you're interested:

http://www.nytimes.com/2014/05/09/technology/hachette-says-amazon-is-delaying-delivery-of-some-books.html?_r=0

OT: I'm not sure I like that Amazon has bought Twitch, but it's better than letting Google take it over. I can absolutely see how US anti-trust laws would have become an immediate concern if Google had managed to acquire Twitch as well as already controlling Youtube. Amazon does seem to have a decent understanding of internet video services so we'll see how it turns out. Though I'm still not thrilled Twitch to see twitch sold to anyone at all...

capcha: forget you
And now I will have Cee Lo Green stuck in my head all night...

The United States has some form of anti-trust/anti-monopoly laws? Interesting. Your government is usually pretty fond of destroying all competition and forming one mega corporation.

I can only see Amazon beating Google to the acquisition of Twitch as a good thing even if they do try to incorporate it into Prime somehow.

SerBrittanicus:
The United States has some form of anti-trust/anti-monopoly laws? Interesting. Your government is usually pretty fond of destroying all competition and forming one mega corporation.

I can only see Amazon beating Google to the acquisition of Twitch as a good thing even if they do try to incorporate it into Prime somehow.

It may have also been concerns of other nations anti trust laws, google is a massive international company that needs to comply on a global level. Not everything is about the USA.

SerBrittanicus:
The United States has some form of anti-trust/anti-monopoly laws? Interesting. Your government is usually pretty fond of destroying all competition and forming one mega corporation.

I must say, this was a pleasant surprise. Now if only Google can sit Comcast down and have a nice long talk (slap session) with those greedy bastards.

Their policies would have killed twitch anyway, the announcement of the recent change to Twitch was enough to get a lot of people jumping ship to alternatives.

I honestly haven't heard of Amazon's management being particularly bad or good. They just kind of exist. We're not closer to a monopoly this way, at least.

Ah, i see whats going on. people were demanding for anti-monopoly laws so they decided to showcase them in the most meaningless case out there while continuing to ignore all the obviuos ones.

Well, i for one am glad that Google didnt got to take over twitch. I dont use twitch, but i dont want it to suffer what Youtube suffered after takeover either.

I'm more thinking that if google took over twitch, they would just take all of their code, and then use it to make youtube better well twitch languishes in a slow painful death well everyone tries to find another site for streaming that doesn't have the almighty google watching them.

Personally though, I don't have very many problems with amazon buying twitch (as of yet, feel free to point some out to me) because when amazon owns twitch they will be putting them on the amazon servers, which as we all know are pretty good.
And then twitch might just get the amazon customer support people, which would be pretty awesome!

And just to wrap it all up, amazon should know better then to interfere greatly with what is used by A LOT of people, and really, I can't see this turning bad.

Now feel free to demolish my points and point out why I am wrong and you are right :P Tell me how amazon is evil, because I honestly really don't find very much wrong with them.

While it's good that Google won't be having a monopoly on the matter, I don't think it's good that Amazon acquired Twitch. Amazon strikes me as the Gamestop of the written world; massively popular, and uses its clout to bully publishers into behaving the way that they want because they push the kinds of sales that allows them to bully publishers and mostly get away with it.

Check out an alternative to Twitch - dingit.tv
Its a new service without any lag and much higher streaming quality.
Finally an alternative to Twitch that allows all broadcasters to become partners
and earn money.

DTWolfwood:
Is it terrible the only thing i kept thinking of is "Oh, will my Amazon Prime also include Twitch Turbo now?" XD

Still better than Google DMCA crap they're pulling on youtube the last few months.

SerBrittanicus:
The United States has some form of anti-trust/anti-monopoly laws? Interesting. Your government is usually pretty fond of destroying all competition and forming one mega corporation.

I can only see Amazon beating Google to the acquisition of Twitch as a good thing even if they do try to incorporate it into Prime somehow.

As it is though, it's mostly a pay gate so that companies who want exceptions made for them need to put more effort into bribing and sucking up to the proper authorities, or if they're more ambitious, using those bought favors as leverage to plant their own puppets directly into the positions that are supposed to regulate them.

Uh.... how did this get necro'd through the front page? It's literally on the front page like a piece of news.

lacktheknack:
Uh.... how did this get necro'd through the front page? It's literally on the front page like a piece of news.

I have it on the front page since Saturday. Luckily I remembered the news and checked the date before I replied.
The site admins should check that out. A year and a half old article being on the front page, I would say it's a bug.

Google sure has more cash, but Amazon has more potential of growth

 

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