In brief: Microsoft’s next acquisition could be its largest to date, and I’m not talking about Activision Blizzard. Reuters in a recent commentary that is financial contends that Microsoft’s next significant target might be Netflix, plus they earn some persuasive things.
Netflix recently partnered with Microsoft to run its brand new ad-supported membership level, which seems to be down up to a start that is slow. According to recent data from analytics firm Antenna, just nine percent of Netflix sign-ups in the US in November were for the* that is( with Ads program, which makes it minimal preferred of all plans offered.
Furthermore, Antenna noted that just 0.1 % of Netflix’s current US customers turned to your plan that is ad-supported month.
For what it’s worth, Microsoft President Brad Smith also holds a seat on the* that is( board.
With Netflix A single bundle with streaming movies and TV as well as loads of games would make a lot of sense under its umbrella. Microsoft is already deeply entrenched in the gaming market with Xbox, and* that is( will continue to develop its video gaming foundation.
Just the other day, the giant that is streaming Twelve Minutes and Kentucky Route Zero to its library of freebies for subscribers. Teenage Mutant Ninja Turtles: Shredder’s Revenge and a game based on Netflix’s own Vikings: Valhalla are coming in early 2023.
Netflix has also been scooping up game studios to build its base, the latest of which – Next Games – was acquired earlier this for $72 million year. In September, Netflix also revealed it might be creating a studio that is new Finland.
Microsoft has the money to make a deal happen, too. As of writing, Microsoft has a market cap of $1.82 trillion which is more than 13 times that of Netflix. Share value is up in both companies on the prediction.
Microsoft’s decision to pursue an acquisition of Netflix could depend on the outcome of its effort that is ongoing to Activision Blizzard. If it gets shot down, Microsoft will have a lot more cash and interest to divert to whatever comes next. Should the merger gain endorsement, it might just make future that is potential bundle a lot more appealing.