Once the pharaonic agreement between Microsoft and Activision Blizzard has been realized, the Redmond giant could try to acquire Netflix. That’s at least according to Laura Martin, Needham’s senior analyst.
According to Martin, an acquisition could prove to be an ideal way out of a less-than-rosy situation for Netflix: the number of subscribers is declining, with the value of the company’s shares plummeting from the numbers recorded at the end of the last year.
A few days ago the two companies signed an agreement of great depth, with Microsoft which will manage Netflix advertisements in the context of reduced-price subscriptions with advertisements while viewing the contents of the platform.
For Needham’s analyst, this is a clear sign of Netflix’s rapprochement with Microsoft, which could lead to an even more important deal in the future. “Maybe Netflix is looking for an exit,” Laura Martin said in an interview with Yahoo! Finance. “He is looking to get closer to Microsoft in the hope that after he completes the acquisition of Activision Blizzard, he will buy Netflix later.”
Needham’s analyst suggests that only Microsoft could support a $ 100 billion acquisition like Netflix and at the same time receive the approval of regular bodies, such as the FTC, given that other giants like Google and Amazon already have proprietary streaming services.
Undoubtedly the one painted by Martin is a very interesting scenario, as it would allow Microsoft to enter the market for TV and movie streaming services. Potentially there could be important implications also with regard to the gaming side, with the acquisition that could favor a greater number of live-action adaptations of the numerous IPs of the company or perhaps lead to the creation of a new maxi-subscription that includes both Xbox Game Pass. than Netflix.
But these are just very fanciful assumptions. The truth is that there is nothing really concrete at the moment and, even if Needham’s analyst is right, a possible acquisition of Netflix by Microsoft could take years. In the meantime, apparently, the marriage between Microsoft and Activision Blizzard could materialize next month.
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