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Home»News»Gaming News»Google Drops Bid Due to Potential Anti-Trust Issues; Amazon, LLC Buys Twitch for $0.97B

Google Drops Bid Due to Potential Anti-Trust Issues; Amazon, LLC Buys Twitch for $0.97B

By Clinton Bowman-ChristieAugust 26, 2014
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Google dropped its bid to buy video game streaming service, Twitch, due to antitrust issues that the acquisition may have caused as reported by Forbes yesterday evening.

This report comes as the news broke that Amazon would acquire Twitch and its outstanding shares for $0.97 billion before the end of 2014.

Forbes, citing sources close to the deal, reported that Google was unable to clinch the deal due to concerns over the potential break-up fee in case the deal did not go through, as well as the potential antitrust issues. The Mountain View, a California based company owns competitor YouTube, the world’s most visited video streaming site, which competes with Twitch to stream and broadcast live or on-demand video game sessions.

Google has faced numerous antitrust investigations throughout the years, including complaints from European and U.S. regulators that Google takes advantage of its power in the search and advertising business. Right now, Google is facing accusations in Europe over Google Play’s restrictions on rival products on the Android Market, as well as in the United States for illegal monopolization of the Internet and mobile search markets.

Ethan Kurzweil, of Bessemer Ventures Partners’, who according to Forbes “led his firm’s  investment in Twitch and sits on its board,” stated that other companies approached Twitch after it fielded Google’s buyout offer.

Forbes also reports that with add-ons, Amazon’s purchase of Twitch could exceed $1 billion before the deal is finalized. This deal would make it the biggest acquisition that Amazon has made since it’s $0.85 billion acquisition of Zappos in 2008.

Source: IGN via Forbes

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Clinton Bowman-Christie
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Teacher's Assistant by day, passionate gamer and wrestling fan by night. This describes Clinton to a T. A Brooklyn, New York resident for all of his life, gaming, Power Rangers, football, basketball and wrestling pretty much comprise a lot of his free time.

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