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Twitch is a popular video game streaming site, where users can watch other players either on PC or gaming consoles such as the PS4 and Xbox.
This will give Amazon an online forum of more than 55 million monthly active users, and it will be able to now offer a strong video ad offering in its inventory.
Its Amazon Prime offering also gets another boost on the entertainment front, which will be more leverage for its own mobile and tablet computer business including the new Fire Phone.
Amazon’s stock prices rose at the start of last night’s trading session, as reports leaked out about the acquisition before it was officially announced during the later part of the session. It closed 0.73% higher at $334.02.
On a technical basis, there’s no clear price action on the stock price yet. It previously made a higher high before making a lower low. The share price looks likely to test its resistance of around $340. More conservative traders may want to watch out for the stock to break above this before considering an entry.