The acquisition is part of a plan to providing original media content.
Amazon has acquired online comedy service company Rooftop Media to strengthen and broaden its media offering.
The acquisition has been made by Amazon owned Audible, an audio book service company, Amazon acquired for $300m in 2008.
Rooftop Media operates Rooftop Comedy, a website that records and streams comedy performances with an option for live streaming across the US.
The acquisition of Rooftop Amazon is a part of the larger plan of Amazon to become one of the entertainment powerhouses in the US.
Reuters reported Rooftop Chief Executive Officer Will Rogers saying that Amazon had interest in the company for quite some time because of the content it provided.
The makers of Rooftop expect the deal to help broaden its audience base.
Amazon has been expanding its service offering and is expected to continue acquiring digital content.
According to report, Amazon is trying to focus on providing original media content and offer new products including tablets, smartphones and set top boxes to accelerate the sale of its own digital content.
However, Amazon was unable to meet the revenue expectations of the investors and it recorded only 17% to 18% percent rise in holiday-quarter sales, which has not gone well with the investors who fear the growth of the company might become stagnant if the return on investment falls.