Analyst Thinks Microsoft Could Acquire Netflix
Microsoft is currently aggressively acquiring video game studios for its Xbox subsidiary. The pace of acquisitions has slowed somewhat due to the ongoing acquisition of Activision Blizzard, in part due to the publisher's size and the amount of international oversight involved. But one analyst believes that Microsoft could have an even bigger acquisition in mind. They believe that once Activision Blizzard closes, Microsoft may consider exploring the possibility of acquiring video streaming service Netflix.
Needham senior analyst Laura Martin recently spoke with Yahoo! Finance regarding a recent ad agreement that she believes conceals a «hidden agenda» between the two companies. Martin explained that a new partnership between Microsoft and Netflix, where Microsoft delivers ads for Netflix's ad-supported streaming service tier, belies a bigger plan. She believes this is the start of a long-term process that could result in Microsoft acquiring Netflix.
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Two key pints are brought up by Martin in her breakdown of the situation. The first is that Netflix chose Microsoft as its partner for advertising for reasons other than Microsoft being the best option, saying that Microsoft is inexperienced in the ad-tech business and that it may disrupt Netflix's launch plans for the ad-supported tier of its service as a result. Basically, if Microsoft is actually a poor partner choice for what's supposed to be a significant, company-changing product offering, then Netflix must have another priority for choosing Microsoft.
The second point Martin brings up is that Microsoft is the only partner Netflix could have chosen capable of making the acquisition at all. That's because
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