Netflix will likely be Microsoft’s new takeover goal, says Reuters
While it is still embroiled in a battle with regulators over the purchase of Activision Blizzard, Microsoft is unlikely to stop its acquisition trend soon🇧🇷 According to Reuters, the company’s next target could be Netflixwhich would be used to extend the reach of its game streaming system.
The vehicle states that, since taking over as CEO in 2014, Satya Nadella was notable for billionaire investments at companies like Mojang, LinkedIn and Nuance. Even if the company ends up being blocked from finalizing the purchase of Activision Blizzard, an acquisition of Netflix “would make strategic sense and would probably be easier to sell in Washington and Brussels”, states Reuters.
The report claims that the two companies already work in a very aligned way, and Microsoft was chosen as a partner to create a new advertising subscription system. Furthermore, it also helps that Brad Smithpresident of the owner of Xbox, is also on the board of the streaming service.
Netflix would facilitate the expansion of streaming games
A Netflix acquisition would make sense given both companies’ investment in the gaming market. While Xbox already offers xCloud as a streaming solutionthe video platform has acquired several mobile studios and intends to soon begin its expansion into the console and PC game market with Triple A quality.
Reuters claims that, with a market valuation of $1.8 trillion, Microsoft could invest the incredible $190 billion needed to acquire Netflix🇧🇷 Although the return on capital would be low by industry standards, Nadella would have proven in the past that he is capable of making bold decisions that escape the logic of the market.
However, until now the companies have not indicated that they have entered into any negotiations that may result in the merger of their businesses🇧🇷 Meanwhile, Microsoft is likely to continue to struggle to approve the purchase of Activision Blizzard, which has recently hit a new roadblock in the form of a lawsuit filed by the FTC.