http://blog.twitch.tv/2014/08/a-letter-from-the-ceo-august-25-2014/
http://www.theverge.com/2014/8/25/6066295/amazon-reportedly-buying-twitch-for-over-1-billion
I already have choice words from the financial side when it comes to AMZN; monetizing this isn’t going to be easy; it could be a long while before Amazon investors see any form of return on this nearly billion dollar (all cash too) acquisition. But this isn’t anything new; Bezo has been burning through capital with the premise that one day, all of these initiatives will turn an actual profit. Instead, the company has rarely turned a profit except for a few quarters and their margins are already razor thin in the online retail space.
Bezo’s wants the company to be the 800 pound gorilla in all kinds of markets. Eventually though, shareholders are going to demand profits from all of this “growth” which is coming from the merger and acquisition angle (I look at Cisco from the 90’s at how big they grew due to M&A and watched what happened after the tech crash in 2000; CSCO the stock hasn’t gone anywhere and Cisco has had to divest itself from many of those acquisitions). Bezo’s has been like teflon so far (for over 15 years at least, Wall Street has given the company a huge fat pass for its lack of profitability mainly because it continues to grow via these sort of acquisitions).
I dunno, all I can say is I’m glad I no longer own AMZN the stock….
