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Could Netflix be Microsoft’s next acquisition target?

Microsoft’s apparently hungry for a bite of the Netflix pie.

microsoft logo on blurred background
Image: KnowTechie

A new report says Microsoft may look to acquire Netflix next year.

According to Reuters, Microsoft CEO Satya Nadella is considering acquiring the entertainment company. The reporter presents the argument for this potential acquisition

The biggest reason is that it “make[s] strategic sense” as the two companies already work together.

Microsoft is Netflix’s ad partner for its ad-supported tier. The Netflix board has one seat taken up by Microsoft President Brad Smith.

Netflix on laptop on table
Image: KnowTechie

A merger would enable the two to keep creating what they already do. It would also give Netflix a larger pot of money to create original content with.

Microsoft Azure servers could host Netflix, removing its reliance on Amazon Web Services. It would also provide a platform for game streaming, something Microsoft wants to bring to every platform.

Will this prediction come true? We can’t see any reason not, other than Microsoft cutting spending as a hedge against a recession.

Microsoft could still have anti-trust issues

blizzard and activision logos
Image: Techspot

Microsoft is currently trying to clear regulatory hurdles in its purchase of Activision Blizzard for the modest price of $69 billion.

The Federal Trade Commission has taken the unusual step of suing to block the merger.

That lawsuit came mere days after Microsoft offered a ten-year contract to keep Call of Duty games on PlayStation consoles.

Will the FTC succeed in blocking the merger? We don’t know, but it can’t be counted out.

The baffling thing is that Xbox is in third place in the console wars. Sony is the market leader, and they’re the ones saying Call of Duty could break them.

xbox series x and playstation 5 on purple background
Image: KnowTechie

The level of hypocrisy is staggering. Sony has long used market dominance to force developers into time-gated or exclusive content.

Bungie, the maker of the Destiny series, still has content for those games that are only accessible on PlayStation consoles.

Sony even owns the developer, paying $3.6 billion for the company earlier this year.

Microsoft used to own Bungie, and they created the flagship Halo game for the original Xbox launch. Then it went independent before signing a ten-year contract with Activision.

Is Sony really worried about the market, or are they just unhappy they didn’t try buying Activision-Blizzard first?

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