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Amazon bought Twitch at a price of more than $1.1 billion, which includes cash of $970 million. So, what does Amazon get for all of this money?
Two things: They'll get a deeply engaged video audience as well as a media company that is already making money in a very unconventional way.
As for the viewers, Amazon knows the audience for live streaming video games is very large and growing. Twitch viewers, in 2013, watched an average of 1 hour and 45 minutes per day on the site.
Currently Amazon spends over a billion dollars each year for its video content; however, Twitch obtains all of its content absolutely free. Clearly the fact that there is already a hefty profit being made by Twitch is certainly interesting. We estimate that Twitch is already making in excess of $72 million on its run rate.