
Of all the acquisitions we thought we might see from Microsoft in 2022, Activision Blizzard wasn't one of them. The announcement was made all the way back in January, although issues have placed the deal in doubt in recent months.
So, what happens in 2023? Aside from the ongoing challenges surrounding the ActiBlizz takeover, Reuters journalist Jennifer Saba is predicting that Microsoft might look to add Netflix to its shopping list, and she provides some pretty convincing reasons why this could be the case.
For example, Microsoft President Brad Smith currently sits on the Netflix board, the two companies have recently been partnering on an ad-supported version of the video streaming service, and Netflix is also currently trying to make a splash in the gaming industry, having bought multiple studios of its own over the past year-or-so.
The question is, is it really feasible? Reuters points out that Netflix would be valued at "nearly $190 billion", which is a significant increase over the $70 billion paid for Activision Blizzard and the $7.5 billion for ZeniMax Media.
Ultimately, this is nothing more than a prediction, but it's an interesting topic of discussion nevertheless. We can see why it could make sense, but we're inclined to believe Microsoft will be too busy with the ActiBlizz deal next year to attempt another major acquisition so soon. Who knows, though!
What do you think? Who else could Microsoft be interested in? Let us know your thoughts below.
[source reuters.com]
Comments 22
Even if Microsoft wanted to buy it would be blocked by the regulators. It's a different time to when Disney brought everything they wanted.
Microsoft have absolutely no experience in producing films and TV shows or shown any interest. Look how many years it's taken to finally take Xbox and gaming seriously. It got so bad last gen I thought they were going to stop making consoles.
Will never happen and don't want them to ruin Netflix.
Why? Why would they acquire Netflix? Personally don't get it
I think the main reason this is being talked about is that Netflix hasn’t been doing as well recently. And the stock market immediately starts thinking about who could buy them out to give them some financial legs. There’s very few companies that could even afford to take on an acquisition of that size. Microsoft is one of them. Apple is another but they already have a foot in the door with streaming.
That said I still don’t see MS even attempting it.
Why not just make Netflix a gamepass perk but at a higher price.
I think it’s fair to assume they’d be interested in more entertainment companies. Especially with how up and down Netflix has been in the past year. If they obtain Activision they’ll have plenty of IP to create more original film and tv for it, and vice versa they can create games from the Netflix IP. Don’t know how that impact halo on paramount though. However, where I see issues is that Netflix is currently a competitor in cloud gaming. Not entirely sure how that would work. There would for sure be more issues if they try to acquire a competitor in that market, considering the scrutiny they are under now.
I work in the streaming tech space. Without writing a giant paragraph explaining all the details I’ll be brief:
There’s zero chance this happens.
I don't imagine MS suddenly taking an interest in TV and film. They've shown little to no interest in it beyond including a Weezer video with Win95 OSR2 CDs. It's so far outside their business experience, not really a growth market in any way, and Netflix value keeps tumbling. I can't imagine any reality where they'd want to buy it.
The only reason I could think of that it may be a benefit to them, however, would be their 3 biggest competitors: Amazon, Google, Apple all DO have a hand in the TV and video pot, while MS does not. They could have interest simply to remain competitive in all markets their rivals are.
And in that vein, it would absolutely NOT be blocked by regulators. It retains an existing player in the business and moves it into the hands of an equal that doesn't currently compete in that market at all, so it would not consolidate anything, merely change ownership to a company not in that market. I'm sure FTC would file their suit, their strategy is to file a suit against anything that moves if it's a big company buying a big company, but there'd be even less chance of winning that case than Activision, MS would not be consolidating anything, but entering a market they have no presence in. I don't think there's any possibility it happens, but if for some reason they wanted to, they couldn't be blocked from it. I don't think they hate money that much though.
FWIW, VERY few companies could afford to buy Netflix wholesale. And most of the ones that do already are competitors and probably WOULD be blocked from doing so since it really would mean huge consolidation. I think Netflix would be boxed into a tight corner if they needed a buyer. Foreign money would probably be the buyer. Tencent, Netease, maybe some European conglomerate. Wanda Group which owns the largest movie theaters in the US, ironically called AMC/American Movie Cinema (Made in China) would be the kind of company that could get into that. Yuck. Otherwise I think they'd circle the drain and either collapse, or be bought for low values by some hedge fund/capital management bank.
Let focus on MANAGING what we have Microsoft and get some of those AAA games out to us gamers.
@Cyberpsycho "Microsoft have absolutely no experience in producing films and TV shows or shown any interest"
I wouldn't exactly say that. They had Xbox Entertainment Studios which was a television and movie studio. Buying Netflix would allow them to continue that on a larger scale, and they wouldn't have to rely on 3rd parties like Paramount for stuff like the Halo Tv show, and they could have full control over the Gears of War Movie which is being made by Netflix.
FYI Microsoft cannot afford to buy Netflix fact! Currently it has about 100 billion cash, where is it going to magic up another 90 billion, and get it past share holders, to buy ONE company, let alone get it past any regulators. It's just plain stupid to even contemplate it. The entire story is pure rumour that's been made up.
No chance, not happening!, (is what I went with) but I suppose the way they went about things announcing a media box or whatever it was when the Xbox one was announced in 2013 it could be a possibility in mind for them still.
I don't think Microsofts lack of experience with making movies or shows really matters, they would likely be hands off anyway.
I also don't really know if regulators would have a case against it (even though that hasn't stopped them recently). It would be a company entering a market by buying a company that is not anywhere close to a monopoly. This can't be argued as harming competition when it would be the exact same field except one competitor would be owned by an outsider. It would probably be the same as Activision though where big company legally spending big money is upsetting to one party of the us government.
I think the bigger issue is whether Microsoft wants it. I don't know the answer to that but it seems like netflix is in a state of limbo right now. Their statements about reaching a plateau and needing to explore other avenues like gaming would worry me if I was MS.
I don't think Microsoft is considering this.
@CrazyJF US generally doesn't block foreign purchases, including China. Plenty of US companies, so long as they're not defense contractors have Chinese ownership (such as the aforementioned AMC Theaters, wholly owned by Wanda Group.) But the more likely factor preventing it is simply that the Chinese giants rarely directly purchase companies, instead purchasing controlling minority stakes and flying under the radar with a hidden puppet string.
I hope they dont, Microsoft will have way too many things to handle. Maybe buy shares and get exclusive content.
They should buy Take Two and shove it up Sony's arse
they were saying Apple was going to buy Netflix a couple of months ago so either Netflix is looking to sell or its all just made up by journalists wouldnt be the first time
TheAshCohen09 wrote:
errrr.... To get a major foothold in one of the few major markets they don't already have a foothold in. And because in this current economy sitting on cash reserves is the worst thing to do for a business.
(Doesn't mean I like it)
Plot twist: Rumour started by Jim Ryan in latest bid to stop ABK deal. /jk
Perhaps they would want to partner with them more to work together with cross promotion, maybe even buy a stake in the company, but I don't see it likely that they'll take a controlling share. The expense alone would be a very bold move.
Still it'd be better than them starting their own TV streaming service.
Partnering with, yes.
Can't see then buying them
We just need xbox gamepass built within netflix - a partnership. To compete against Samsung gaming hub which is on 10 tvs so far.
@TheAshCohen09 More power in entertainment .
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