14 DAY TRIAL // Microsoft is planning to spend no more, no less than $72 billion on one of the largest acquisitions in history, as it’s taking over Activision-Blizzard, but according to one analyst, the software giant shouldn’t stop here.
Laura Martin, Needham senior analyst, told Yahoo Finance that the world really shouldn’t be surprised if Microsoft’s next target is Netflix.
That’s right, as unexpected as this may sound, Microsoft could end up buying Netflix, as the analyst says this is a move that even Netflix itself seems to be interested in.
“It could be that Netflix is looking for an exit. (...) Netflix is trying to get closer to Microsoft in hopes that, after Microsoft digests its Activision acquisition, it turns and buys Netflix next,” the analyst explained.
Certainly, Microsoft taking over Netflix would really be something, especially given a potential agreement that would easily surpass $100 billion. Would it make sense for Microsoft? Hard to say, especially as Netflix is already losing subscribers, therefore leading to losing many investors as well.
Microsoft already working with Netflix
Earlier this month, Netflix announced that Microsoft has been selected as the global advertising tech provider and sales partner, and this is probably why the analyst believes Netflix could be trying to get closer to the software company.
“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” Greg Peters, COO and CPO, said.
“It’s very early days and we have much to work through. But our long term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We’re excited to work with Microsoft as we bring this new service to life.”