Amazon is Reportedly Having Second Thoughts About Its $1 Billion Acquisition of Twitch

Since the purchase in 2014, the streaming giant has shown signs of decline, with internal metrics indicating it’s becoming a “zombie brand.”

Streaming continues to be popular, but Twitch isn’t generating as much profit as expected. A recent Wall Street Journal report revealed a drop in viewership and spending from major users, leading to slower revenue growth for Amazon.

In January, Twitch laid off 500 employees in an attempt to cut costs and boost profitability. This issue isn’t unique to Twitch; other Amazon-owned brands like Goodreads and Mechanical Turk also struggle against faster-growing competitors.

Smaller companies like Kick are gaining ground, highlighting Twitch’s potential shift from its original focus on gaming streams. Today, popular streamers like Kai Cenat and IShowSpeed attract millions of viewers with non-gaming content.

Despite these challenges, Twitch remains a dominant platform, but its future is uncertain as competition increases.