According to one analyst, Netflix would be preparing for a future acquisition by Microsoft. Recently, it was revealed that Netflix is experiencing economic problems and has lost subscribers significantly in recent months.
The streaming giant confirmed that it expects to lose even more users in the coming months, which has caused concern from its investors. She intends to bet on a cheaper plan with ads, but may have another strategy to grow back in the market.
economy and market
Earlier this week, it was announced that Microsoft will work with Netflix on a new subscription plan with ads, offering technologies and sales. This will allow the streaming giant to offer a new tier at a lower cost to broaden its user base.
Needham senior analyst Laura Martin spoke to Yahoo about the deal and suggested that Netflix’s ambitions are much bigger than they appear. According to her, the streaming service wants to build a friendly relationship with the Redmond giant to strategically position itself for an acquisition.
Martin also notes that no other company that Netflix has partnered with could make the $100 billion acquisition, the streaming giant’s estimated value at the time, something the Windows and Xbox owner could afford. She says:
Netflix may be looking for a way out and that’s why it approaches Microsoft. After the acquisition of Activision Blizzard is finalized, she is hopeful that Microsoft will make an offer and buy it.”
With the purchase, Microsoft would gain a film and series division to adapt its intellectual properties from video games, such as The Elder Scrolls, Gears of War and soon, Call of Duty. Additionally, it could spice up Xbox Game Pass by adding the Netflix gaming session.
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Developer: Netflix Inc
Free – offers in-app purchases
Size: Varies by platform