An industry analyst said that Microsoft could buy Netflix. Microsoft is in the process of acquiring Activision Blizzard and King for $ 72 billion, which will give Microsoft and its Xbox games division control of some of the most popular video game franchises in the world, such as Call of Duty, Warcraft, Candy Crush and many, many others.
All the logic behind this acquisition ultimately goes back to Xbox Game Pass, Microsoft’s game subscription service, which the company hopes will become the engine for its expansion beyond its Xbox consoles. Microsoft has aggressively expanded its streaming capabilities for games, putting its Xbox Cloud Gaming service on Samsung smartphones and TVs. In this logic, it appears that Microsoft may therefore want to buy Netflix.
As we reported a few days ago, Microsoft has partnered with Netflix as an exclusive advertising market and technology partner, which could push Microsoft to potentially buy Netflix. On this, Laura MartinNeedham’s Principal Analyst said Netflix may be looking for a way out, trying to get closer to Microsoft in hopes that after Microsoft assimilates the Activision acquisition, it will focus on Netflix later.
Martin reportedly suggested that only Microsoft could buy Netflix, as it would have the ability to pay back Netflix’s potential $ 100 billion valuation once the deal between Activision and Blizzard is concluded, as well as gaining regulatory approval. Of course, many other companies could take over Netflix, including Amazon or Google.
Combining the Xbox Game Pass and Netflix offerings into one service would give Xbox game developers access to tens of millions of potential new users, providing visibility on a level that is simply unheard of with the Xbox base to date.
Source: Windows Central
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