Amazon has one of its biggest deals ever by acquiring the rights to game-streaming service juggernaut, Twitch - a brand Google refused to come into terms with.

Google did not want to commit to purchasing Twitch because its nature, an online-videogame streaming, is roughly the same as Google's other video-streaming site affiliate, Youtube.   

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Amazon's $1 billion purchase of Twitch was made possible due to Google's hesitance on the breakup fee if the deal doesn't push through.

A breakup fee, or a bonus fee, will be received by Twitch if the deal between them and Google will not be closed.

In 2012, a deal between AT & T and T-Mobile was not closed. This resulted AT & T to shell out money to T-Mobile.

According to reports, both Twitch and Google were close in reaching an agreement, only to be halted due to the antitrust.

At the time of negotiation, Twitch made no mention of closing a deal with other companies, although there were several companies that were also interested in acquiring their rights.

Amazon took the opportunity and pounced on the opening to acquire Twitch after Google backed off from the deal.   

Twitch is a fast-growing online-viewing site that is showing signs of durability in the long run.

It was reported that back in 2013, Twitch viewers had an average of an hour and 45 minutes of viewing on the site every day.

Reports showed that had $5.06 billion in cash, which means that they spent 20% on the acquisition of Twitch.

Amazon will likely see a bump in their on their audience, with young males as Twitch's primary target.

With the purchase, Amazon now has its own version of Youtube.

It seems like a done deal between Twitch and Amazon, but the deal must be done in a regulatory process. 

TagsTwitch, Amazon