Well this is a surprise (and I think a pleasant one). We were under the impression that YouTube, the video distribution arm of Google, was planning to purchase Twitch for $1 billion USD (pending regulatory approval). Today, it was made official: Amazon would be purchasing the video streaming platform. Twitch's CEO, Emmett Shear, published an open letter to their community with a message of thanks and a confirmation of Amazon's acquisition.
I guess "eSports" is ready for… Prime time.
Twitch did not mention their value, but don't worry — Amazon published a press release. The retail and infrastructure giant will pay $970 million in cash. The entire deal is expected to finalize "in the second half of 2014". Since we are already in the second half of 2014, that means any time between now and New Year's (assuming "Calendar 2014").
On the copyright front, I believe this is a major step forward. We originally feared that YouTube, and its parent company, Google, would impose a similar system to their own upon Twitch, to appease copyright owners. This is a problem because YouTube's copyright complaint system is plagued with abuse. I hope that Amazon and Twitch will be more friendly to potential, unproven infringers than YouTube has demonstrated itself to be.
Lastly, Amazon has a big, existing business in web infrastructure and online content delivery. Whether you look from the angle of Prime Video or Amazon Web Services (EC2, CloudFront, etc.), the company can handle sending bits from one place to another. They seem to be a good fit on on that front.
If there was any doubt that Amazon wants to be a big part of the gaming industry, it is gone.