The demise of Mixer surprised many players as it had completed a series of high profile acquisitions and was working under Microsoft who is one of the most successful technology companies in the world. Despite what seemed to be a positive direction, Mixer folded unceremoniously into Facebook Gaming and many streamers and viewers have wondered what prompted the decision. A new report by Business Insider now suggests that several factors led to the disappearance of the streaming platform.
Mixer was created in 2016 under the name Beam by Matt Salsamendi and James Boehm, the company quickly found its footing as a competitor to the incredibly successful Twitch. However, despite the support of Microsoft the company did have issues with distinguishing itself from the already established and popular Twitch. As a result, Mixer appeared to use its money to acquire streamers and promote itself and this was a key part of the downfall of the service.
While all companies need to promote and market themselves to a potential audience, it appears that the process of acquiring streamers financially impacted the company without the desired return. In the report on Mixer, it is claimed that the deal that brought Ninja to the service was valued between 20-30 million dollars and this appears to be an unwise investment. The streamer only amassed 3.2 million subscribers on Mixer, which is disappointing when it is compared to the 15 million they have on a dormant Twitch account. With this lackluster return from a large investment, it is clear that this strategy was not yielding the profit intended. Internally the company was also facing significant issues that began when the founders of Mixer left in 2019.
After the founders of Mixer left, it seems that the company had morale problems and quickly descended into a toxic environment. Employees such as Wes Wilson and Milan Lee expressed their dissatisfaction with the HR teams at Microsoft in terms of dealing with the issues they were facing under new management. With that in mind, it is clear that the company was experiencing internal issues. The team behind the platform appeared to be divided, and with that kind of work environment, the company was unlikely to challenge industry giants like Twitch.
The report suggests that Mixer was hemorrhaging money with the signings of Ninja and Shroud while internally it struggled to keep its creative team. As a result, the company folded as it was not valuable if it was losing money and staff at a significant rate. Streamers who used the platform will be disappointed in the demise of the platform but judging by the statements of employees and the spending of the company it seems that Microsoft was making the correct business decision.
Source: Business Insider