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- According to the Wall Street Journal, Twitch approached Chamath Palihapitiya to announce his deals.
- Palihapitiya has built a large following on social media platforms like Reddit and Twitter.
- Twitch did not immediately respond to request to comment from Insider.
- Visit the Business section of Insider 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 about becoming the exclusive platform to announce his business deals. Palihapitiya – founder and CEO of Social Capital and a frequent sponsor of special purpose acquisition companies, or SPACs, – has developed a loyal following on social media platforms like Reddit and Twitter, where he openly discusses his next targets and slings insults at hedge funds and traditional finance institutions.
Twitch, which is owned by Amazon, has an estimated 26 million daily users. Twitch did not immediately respond to request to comment from Insider.
Amid the surge of SPAC deals in recent months, Palihapitiya has become a leader in navigating the increasingly crowded market and appealing to an anti-establishment group of investors. His star has continued to rise thanks largely to his ability to speak openly and candidly about SPAC deals before they start trading, a practice that is restricted in the traditional initial public offering process.
“I am a byproduct of my generation and media culture, which is faceted,” Palihapitiya said in a recent interview with Bloomberg. “Not always great facets, but multifaceted. And so you have to speak in the language of the times in order to get your point across.”
As a result, the investor has built a growing audience of day traders and investors that cling to his every word in search of the next big deal, which can translate to big business for streaming platforms like Twitch and cable networks.
According to the Wall Street Journal, Palihapitiya arranged for extended airtime with CNBC on the days of specific announcements during which he presents slides from his investor presentation. His appearances on CNBC have had significant influence on the perception of the SPAC, and their ability to bring a company public without having to go through the formal IPO process.
"I think that SPACs are very much 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 allows retail and it allows long-tail institutional investors. Folks that might not have necessarily been tier one hedge funds, now they can also play."