Microsoft May Acquire Netflix in 2023

According to some latest reports, Satya Nadella, the chief executive officer of Microsoft, is planning to acquire Netflix in 2023. Since his 2014 promotion, Nadella has embarked on a pricey shopping fling. It started with the $2.5 billion acquisition of the company behind the hit game Minecraft. Later, Microsoft bought LinkedIn for $26 billion. Then the company acquired the speech recognition and artificial intelligence software developer Nuance for $20 billion. Now, the company is in buying Activision Blizzard for $69 billion.

Microsoft May Acquire Netflix in 2023

Currently, Microsoft is busy fighting U.S. trustbusters for the right to absorb the “Call of Duty” creator. Putting it under the same roof as the gaming console Xbox has led to regulatory concerns about market dominance.

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On the other hand, Netflix chose Microsoft as its advertising partner for a new advertising-supported subscription service. Microsoft President Brad Smith also sits on the Netflix board. One of the main reasons behind this deal is that Microsoft wants to offer a video-game streaming service over multiple devices.

According to Reuters, Netflix has its own big plans in gaming. In 2022, the company co-led by Reed Hastings snapped up developer Spry Fox, its sixth in-house studio. Becoming part of the Microsoft empire would supercharge those ambitions. A bundle with streaming TV and games together is not hard to implement.

With a market value 13 times that of Netflix, as of early December, $1.8 trillion Microsoft can afford Netflix. A 30% premium would value the Netflix enterprise at nearly $190 billion. Significant cost savings would be hard to find, however.

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