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REUTERS: Netflix will be next on Microsoft’s shopping list

Swift_Star

Swift_Star

Banned
https://www.reuters.com/breakingvie...tent&utm_medium=trueAnthem&utm_source=twitter

NEW YORK, Dec 20 (Reuters Breakingviews) - Satya Nadella keeps thinking bigger. Microsoft's (MSFT.O) chief executive has been buying new businesses at an impressive clip. Look for him to add Netflix (NFLX.O) to the list in 2023.
Since his 2014 promotion into the technology titan's corner office, Nadella has embarked on a pricey shopping spree. It started with the $2.5 billion acquisition of the company behind the hit game Minecraft. Later, Microsoft bought LinkedIn for $26 billion and the speech recognition and artificial intelligence software developer Nuance for $20 billion. Activision Blizzard (ATVI.O) was by far the largest disclosed target, at $69 billion.
Click to expand...
NEW YORK, Dec 20 (Reuters Breakingviews) - Satya Nadella keeps thinking bigger. Microsoft's (MSFT.O) chief executive has been buying new businesses at an impressive clip. Look for him to add Netflix (NFLX.O) to the list in 2023.
Since his 2014 promotion into the technology titan's corner office, Nadella has embarked on a pricey shopping spree. It started with the $2.5 billion acquisition of the company behind the hit game Minecraft. Later, Microsoft bought LinkedIn for $26 billion and the speech recognition and artificial intelligence software developer Nuance for $20 billion. Activision Blizzard (ATVI.O) was by far the largest disclosed target, at $69 billion.
Click to expand...
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 fathom.
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. And after taxing the $8 billion of operating profit that analysts project for Netflix in 2024, the implied return on investment would only be half its 8% weighted average cost of capital, per Morningstar analysts.
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If true, I really don't know what to think.
Just hope it isn't.
 
deriks

deriks

4-Time GIF/Meme God
- is XCloud the Netflix of gaming?
- no, most of them will be fired, and we will call them XfliX
 
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R

reksveks

Member
Don't see it happening personally despite the Xandr deal and Reed Hastings being an ex-Microsoft guy.

Margins aren't ever going to be high enough and it doesn't really boost anything else.

I suspect its more investments in Openai, next
 
Nankatsu

Nankatsu

Gold Member
Suits them. Go for it.

Thierry Henry Smile GIF by hamlet
 
Mr Hyde

Mr Hyde

Member
Nadella ain't resting until he owns the world. When he does, he will retreat to his newly built empire on the moon, sitting comfortably on his throne, putting his feet up on Phil Spencers back. From there, he will gaze down upon the earth, listening to the endless roars of angry old men, pointing their fingers at the sky, screaming: YOU RUINED MOVIES AND GAMES! EVERYTHING IS DEVALUED BY YOUR SHITTY SUBSCRIPTION SERVICES! WE OWN NOTHING AND WE LIKE IT!!!!!
 
Magic Carpet

Magic Carpet

Member
Sony hasn’t included any of their media movie or anime into gaming service Yet. Sony has the big Anime offerings. Netflix is going to lose many Anime contracts including NHK because of advertising.
Microsoft has what? Halo?
 
ResilientBanana

ResilientBanana

Member
Let's not forget that Microsoft makes a plethora of software and has a ton of services. Windows, Office, Azure, Xbox, Surface, Hololens, Teams, Skype, Gamepass, Xbox Live, Bing etc. Not to mention, the Microsoft Store has Movies, Shows, Games, Applications, etc. Clearly, they aren't a one-trick pony and buying the world's largest streaming platform in the world certainly falls under their cloud-based strategy. Why gaming nerds think it's funny to poke fun at this move is beyond me. This is the company that's inside over a billion PC's and millions of companies. Buying Netflix as a very miniscule piece of the pie, yet, hopefully a profitable one.
 
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StreetsofBeige

StreetsofBeige

Gold Member
That'd be great news.

MS would offer some kind of NF + GP bundle, and MS has the funds to put toward NF content. MS makes about $60 billion profit per year.
 
HTK

HTK

Banned
Microsoft Teams 🤢🤮

But yeah the move to go after Netflix (If it's true) makes sense. That would definitely put Game Pass above and beyond because it's already a good value. If they buy Netflix and put Game Pass on it and the pricing is right, there is no competition it's over when it comes to streaming services.
 
ResilientBanana

ResilientBanana

Member
HTK said:
Microsoft Teams 🤢🤮

But yeah the move to go after Netflix (If it's true) makes sense. That would definitely put Game Pass above and beyond because it's already a good value. If they buy Netflix and put Game Pass on it and the pricing is right, there is no competition it's over when it comes to streaming services.
Click to expand...
Teams blows, for sure, Slack is better.
 
MadPanda

MadPanda

Banned
feynoob said:
MS would have easy pass here, as they don't have any position in media platform.

Still, 190b is insane
Click to expand...

Nah, Lisa's argument is that they're using their position and wealth to dominate certain markets and foreclose competition and this would be the prime example for her arguments. I'm not saying I agree with her, but that's what I understood.
 
StreetsofBeige

StreetsofBeige

Gold Member
MS Teams. Ugh. Although it's better than it was in 2020.

Nothing like doing conference calls with echo, voices cutting out, "It wont let me share my screen" and other random quirks.

"Hold on everyone, let me leave and rejoin the meeting"........ "Ah, good news that fixed it"

What a great program. /S
 
Valonquar

Valonquar

Member
Well Netflix is hemmoraging account subs now that they have direct and often better competition from other streaming services, so it's probably cheaper to buy now than it would have been in the past.
 
Sleepwalker

Sleepwalker

Member
Netflix is only behind primevideo in the race for the worst content so whatever?


There was a point in time where Netflix used to be good and that was when they were able to license stuff, most of their original shows are extremely shit now.
 
feynoob

feynoob

Banned
MadPanda said:
Nah, Lisa's argument is that they're using their position and wealth to dominate certain markets and foreclose competition and this would be the prime example for her arguments. I'm not saying I agree with her, but that's what I understood.
Click to expand...
MS has no position is entertainment market.
Khan or whatever regulators can't stop MS from buying Netflix.

You have to be a player in that market, like how MS has Xbox in gaming industry.
 
MadPanda

MadPanda

Banned
feynoob said:
MS has no position is entertainment market.
Khan or whatever regulators can't stop MS from buying Netflix.

You have to be a player in that market, like how MS has Xbox in gaming industry.
Click to expand...
I understand what you're saying and I agree, but I'm not talking about that.
 
Valonquar

Valonquar

Member
Well they lost me, most of my family members, and all of my co-workers and friends a couple years back. When they started losing big studio stuff and started focusing more on their own content creation, they went from having too much to watch to like one show a month or less to watch IMHO. Getting HBOMax for free with my Fiber sort of put the final nail in the coffin.
 
Fbh

Fbh

Member
"Subscribe now to Gamepass Mega Ultimate to get Netflix to watch that Horizon Zero Dawn show."

Future will be interesting
 
xrnzaaas

xrnzaaas

Member
Valonquar said:
Well Netflix is hemmoraging account subs now that they have direct and often better competition from other streaming services, so it's probably cheaper to buy now than it would have been in the past.
Click to expand...
And it'll continue to become cheaper given how Netflix plans to keep fighting account sharing... so unless there's some other party that's very interested it's best to wait.
 
ChuckeRearmed

ChuckeRearmed

Member
If they were to expand into media, it would make sense. This + Spotify.

feynoob said:
Khan or whatever regulators can't stop MS from buying Netflix.
Click to expand...
Khan will go to protect Disney, Apple and Amazon :messenger_tears_of_joy:

ResilientBanana said:
Let's not forget that Microsoft makes a plethora of software and has a ton of services. Windows, Office, Azure, Xbox, Surface, Hololens, Teams, Skype, Gamepass, Xbox Live, Bing etc. Not to mention, the Microsoft Store has Movies, Shows, Games, Applications, etc. Clearly, they aren't a one-trick pony and buying the world's largest streaming platform in the world certainly falls under their cloud-based strategy. Why gaming nerds think it's funny to poke fun at this move is beyond me. This is the company that's inside over a billion PC's and millions of companies. Buying Netflix as a very miniscule piece of the pie, yet, hopefully a profitable one.
Click to expand...
The most fascinating this is that Microsoft is rich purely on B2B and cloud unlike other giants like Google that lives and dies by ads and search
 
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bitbydeath

bitbydeath

Member
MS couldn’t afford them, it’d take all their cash reserves + another hundred billion or so in stocks and we know MS is the sort of parent that adopts a lot of children but doesn’t feed them, and without that further additional 20+ billion being fed into Netflix’s mouth each year it would die faster than HBO under Discovery.
 
O

Ozriel

M$FT
Did anyone bother to read the damn article?

It’s just speculation and an opinion piece. The same as anyone here would write.

There’s zero indication that MS has any interest there, and they certainly won’t be interested in paying $190 bn.
 
kruis

kruis

Exposing the sinister cartel of retailers who allow companies to pay for advertising space.
It's from Reuters so I'd assume they'd only publish this if there's hard proof that MS is close to finishing a deal. But this is nothing more than a "prediction for 2023". The writer thinks it makes business sense, but there's no hard evidence that MS has its sight set on a streaming business.

I expected better from Reuters than clickbait.
 
K

Kimahri

Banned
Eeehhhh... I'm not a fan of huge companies eating everything out there.

But at the same time Netflix is kinda shit these days and I've been thinking of unsubscribing..

So if they give me game pass and netflix for the price of one, I might be in..
 
ChorizoPicozo

ChorizoPicozo

Member
Ozriel said:
Did anyone bother to read the damn article?

It’s just speculation and an opinion piece. The same as anyone here would write.

There’s zero indication that MS has any interest there, and they certainly won’t be interested in paying $190 bn.
Click to expand...
Like Apple buying Disney.
 
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