As Amazon announces plans to acquire grocery store chain Whole Foods in a deal valued at $13.7 billion, the question that pops into the minds of entrepreneurs everywhere is: What's it like when Amazon buys your company?
Kevin Lin, co-founder and COO of Twitch, the video-game-streaming site that Amazon bought for $970 million in cash in 2014, knows the answer to that: "Frightening," he jokes. "At least at first."
"I find entrepreneurs talk a lot about – especially after they raise money — 'Who's gonna buy us? What are we going to do with the money?' But you can't think that way," Lin tells CNBC. "Especially people who are vocal in the office, and you find this, surprisingly, a lot. And it makes your culture really weird when you think about it a lot."
In the case of Twitch, "We weren't seeking it but all these companies started reaching out – we're like, 'Why are all of these companies reaching out all of a sudden asking how things were going, wanting to meet'?
"But we met with a ton of people and Amazon from a company values perspective matched ours really well. And we felt like we were really differentiating. They weren't doing anything like we were. Whereas other companies had similar platforms or similar businesses. We felt pretty comfortable with it," says Lin.