- According to the Wall Street Journal, Twitch reached out to Chamath Palihapitiya to announce their deals.
- Palihapitiya has built a huge following on social media platforms like Reddit and Twitter.
- Twitch did not immediately respond to Insider’s request for comment.
- Visit the Insider Business section for more stories.
Twitch is looking to capitalize on the growing buzz surrounding venture capitalist Chamath Palihapitiya.
According to the Wall Street Journal, the live streaming service approached Palihapitiya to become the exclusive platform for announcing its business deals. Palihapitiya, founder and CEO of Social Capital and a frequent sponsor of Special Purpose Acquisition Companies, or SPAC, has developed a loyal following on social media platforms such as Reddit and Twitter, where he openly discusses his upcoming goals and hurls insults at the funds of coverage and traditional financial institutions.
Twitch, which is owned by Amazon, has an estimated 26 million daily users. Twitch did not immediately respond to Insider’s request for comment.
Amid the surge in SPAC deals in recent months, Palihapitiya has become a leader in navigating an increasingly crowded market and attracting an anti-establishment group of investors. His star has continued to rise thanks in large part to his ability to speak openly and frankly about
deals before they go public, a practice that is restricted in the traditional initial public offering process.
“I am a by-product of my generation and of media culture, which is multi-faceted,” Palihapitiya said in a recent interview with Bloomberg. “They are not always great facets, but they are multifaceted. Therefore, you have to speak in the language of the time in order to convey your point of view.”
As a result, the investor has created an ever-growing audience of daily traders and investors clinging to his every word in search of the next big deal, which can translate into big deals for streaming platforms like Twitch and cable networks.
According to the Wall Street Journal, Palihapitiya arranged an extended air time with CNBC on specific announcement days during which it presents slides of its investor presentation. His appearances on CNBC have had a significant influence on the perception of the SPAC and its ability to go public without going through the formal IPO process.
“I think the SPACs are here to stay,” Palihapitiya told Bloomberg in February. “Using the language of inequality, it evens the playing field. It democratizes access to high-growth companies. How? Because it enables retail and enables long-tail institutional investors. You can also play.”