An industry analyst has said that Microsoft could buy Netflix. And this, as crazy as it sounds, makes sense. Microsoft is in the process of acquiring Activision-Blizzard-King for a truly staggering $72 billion, which will give Microsoft and its Xbox gaming division control of some of the world’s most popular video game franchises including Call of Duty, Warcraft, Candy Crush and many, many more .
All the logic around this acquisition ultimately goes back to Xbox Game Pass, Microsoft’s fledgling game subscription service, which the company hopes will become the engine for its expansion beyond its Xbox consoles. Microsoft has been aggressively expanding its streaming capabilities for gaming, putting its Xbox Cloud Gaming service on Samsung smartphones and TVs. In this logic, it seems that Microsoft could buy Netflix.
Microsoft could buy Netflix
Microsoft has partnered with Netflix, it was announced. Netflix has chosen Microsoft as the exclusive market for ads and technology partner, which has prompted Microsoft to buy Netflix. It will be a turning point in Microsoft’s advertising business. On this, Laura Martin, Principal Analyst at Needham, said that Netflix may be looking for a way out, trying to get closer to Microsoft in the hope that after Microsoft digests its acquisition of Activision, it will turn around and buy Netflix next. .
Activision Blizzard games would come to Xbox Game Pass in 2023 with different improvements
Apparently, Martin suggested that only Microsoft could buy Netflix, as it would have the ability to pay for Netflix’s potential $100 billion valuation once the deal between Activision and Blizzard closes, in addition to getting regulatory approval. Of course, many other companies that could take over Netflix, such as Amazon or Google. In addition, Netflix has some high caliber studios of its own that could create Xbox IP series and movies.
The combination of Xbox Game Pass and Netflix offer in one service It would give Xbox game developers access to tens of millions of potential new users, providing exposure on a level that is simply unheard of with today’s Xbox install base. All of this tells us that Microsoft could indeed buy Netflix. Which of course does not mean that it will. Now we are only left with the question of the future of this theory.