At last a big digital deal that makes sense from a financial point of view even if the future synergies between the acquirer and the acquiree don’t make sense – yet! The deal is $AMZN’s acquisition of #Twitch for $970 M. Yes folks, that’s less than a Billion and far less than the $19B that Facebook overpaid for WhatsApp. I think that Twitch is a great idea. Watching other people play interactive online games isn’t my cup of tea but I can see its attraction and it’s a simple concept (no need for a whole ‘elevator pitch’ it won’t last more than one floor!): “We want to become the ESPN of gaming!” What's more, Twitch's numbers are amazing. And the gaming industry is massive. The size of global video game market revenue, including mobile games on smart phones and tablets: $66 billion, up from $63 billion in 2012 and is expected to grow to $78 billion in 2017. Only question, can Amazon make it work for them?
OK, in a 5th round #BuzzFeed got $50M funding from Andreessen Horowitz on
Sunday. So, where does this leave Shane Smith's Vice Media? Vice recently raised
$70M from Murdoch's 21st Century #Fox, $50M of which is reportedly slated to
boost the company's already great news video channel. I posted last month about
the inane repetitive diatribe that #BBC, #CNN, #CNBC broadcast from
correspondents sitting in hotels. Vice get out on the streets and mix it with
both the good and the bad guys worldwide. Check out their blazingly good #ISIS
material posted last week here: https://news.vice.com/
What a story Netflix is. From nowhere its subscriber revenue now beats HBO. Quite an achievement. Here’s my 3 key reasons why: 1. Netflix has great, but dangerous, content. Dangerous because its ‘binge viewable’. Twice in the past six months my wife and I have done this over a weekend to my detriment (#HouseofCards and ALL seasons of the #Goodwife – the latter episodes left me with symptoms of Jet Lag, which I don’t get when I fly!) 2. Netflix is great value. £6 in the UK on 5 devices. Man that’s a great deal. 3. Their original content is getting both viewers and critical acclaim. Godd job Netflix!
Concise, immediate, comment on the balls bouncing around the digital technology space.