Although it is still busy completing its acquisition of game publisher Activision Blizzard, Microsoft is said to be planning to acquire Netflix.
According to Digitnews, Microsoft CEO Satya Nadella is “thinking big” and could acquire the popular streaming platform Netflix after completing the acquisition of Activision Blizzard in the first half of next year. Reportedly, Microsoft has to convince regulators that buying Activision Blizzard will not harm other companies in the market.
Reuters reported that the Netflix acquisition would be easier to pass through regulators such as the US Federal Trade Commission (FTC) and the European Union (EU).
Netflix and Microsoft are two companies that have been closely linked in recent times. Netflix has selected Microsoft as its advertising partner for its new subscription service. Microsoft President Brad Smith also sits on Netflix’s board of directors.
Part of the reason behind this acquisition is that Microsoft wants to offer its video game streaming service on more devices. Meanwhile, Netflix has big plans for the gaming sector. In 2022, the company led by Reed Hastings acquired developer Spry Fox to become Netflix’s sixth in-house studio.
Being part of the Microsoft empire will help bolster those ambitions for Netflix. Microsoft has a market value 13 times that of Netflix. When Microsoft wants to buy it, Netflix’s estimated value can be up to nearly 190 billion USD.