Report: Amazon close to beating out Google to buy Twitch (updated)

|By:, SA News Editor

The Information reports Amazon (AMZN +1%) "has been in late-stage talks" to acquire popular game-broadcasting platform Twitch, and could announce a deal shortly. Prior reports stated Google (GOOG -0.4%) was close to a deal to buy Twitch for ~$1B, or had fully reached one.

Twitch, whose platform allows users to live-stream their gaming activity (along with running commentary), has 50M+ users and a network of 4K+ content provider partners. The startup claims its average user watches 95 minutes/day of content.

Buying Twitch would represent a major investment by Amazon in free (ad-supported) online video. Thus far, the bulk of the company's Web video investments have been directed towards Prime Instant Video. Amazon has also been fleshing out its own game studio.

The Information's report shortly follows a WSJ report stating Amazon is working on a keyword-based ad platform (called Sponsored Links) that aims to replace ads based on Google's bread-and-butter AdWords keyword platform on Amazon's site and elsewhere. Amazon has already built up a sizable ad business, aided by its volumes of customer data.

Update (2:05PM): The WSJ reports Amazon has agreed to buy Twitch for $1B+.