Twitch provides value to Amazon by operating at a loss and paying for AWS on the back end, Twitch might appear less profitable (or even operate at a loss), AWS still records revenue from the transactions. You’re looking at the surface, where Twitch needs to be individually profitable. Companies use shells like this in far deeper ways for their own tax benefits.
This allows Amazon to shift their tax burden to a company that’s operating “at a loss”, and keep the revenue with AWS and show record profits.
Companies wouldn’t just buy others up, intending that all they do is cause harm. Twitch is being leveraged in deeper ways.
Im not sure why people are disagreeing or downvoting me while also making my point. I said they’re lucky to be alive and I highlighted why. They cannot survive without Amazon or AWS. That was the whole point. Yes they serve some alternate purpose to Amazon surely, but again that’s also a threat.
If for whatever reason they stop serving that purpose (whatever it is) or someone high up stops seeing their value, they’re done for as a business altogether. Because they can’t justify themselves internally much at all and their financials are probably awful. That was my point. And if Amazon decides they’re done with them for whatever reason, they cannot survive without AWS being so cheap for them. Not sure how that point got lost in the sauce.
I’m saying that Amazon has no monetary interest in Twitch.
Taxes are monetary losses. Twitch is providing monetary benefit to Amazon. That is their ‘success’. That IS their survival.
AWS is only cheap for them artificially. You keep replying as if Twitch needs to make a profit to be ‘successful’. It doesn’t. It doesn’t need AWS to be artificially cheap either. You’re missing the forest for the trees.
Twitch provides value to Amazon by operating at a loss and paying for AWS on the back end, Twitch might appear less profitable (or even operate at a loss), AWS still records revenue from the transactions. You’re looking at the surface, where Twitch needs to be individually profitable. Companies use shells like this in far deeper ways for their own tax benefits.
This allows Amazon to shift their tax burden to a company that’s operating “at a loss”, and keep the revenue with AWS and show record profits.
Companies wouldn’t just buy others up, intending that all they do is cause harm. Twitch is being leveraged in deeper ways.
Im not sure why people are disagreeing or downvoting me while also making my point. I said they’re lucky to be alive and I highlighted why. They cannot survive without Amazon or AWS. That was the whole point. Yes they serve some alternate purpose to Amazon surely, but again that’s also a threat.
If for whatever reason they stop serving that purpose (whatever it is) or someone high up stops seeing their value, they’re done for as a business altogether. Because they can’t justify themselves internally much at all and their financials are probably awful. That was my point. And if Amazon decides they’re done with them for whatever reason, they cannot survive without AWS being so cheap for them. Not sure how that point got lost in the sauce.
Taxes are monetary losses. Twitch is providing monetary benefit to Amazon. That is their ‘success’. That IS their survival.
AWS is only cheap for them artificially. You keep replying as if Twitch needs to make a profit to be ‘successful’. It doesn’t. It doesn’t need AWS to be artificially cheap either. You’re missing the forest for the trees.