{"id":165926,"date":"2022-12-23T05:58:04","date_gmt":"2022-12-23T05:58:04","guid":{"rendered":"https:\/\/harchi90.com\/netflix-said-to-be-on-acquisition-radar-of-this-tech-giant-microsoft-nasdaqmsft-netflix-nasdaqnflx\/"},"modified":"2022-12-23T05:58:04","modified_gmt":"2022-12-23T05:58:04","slug":"netflix-said-to-be-on-acquisition-radar-of-this-tech-giant-microsoft-nasdaqmsft-netflix-nasdaqnflx","status":"publish","type":"post","link":"https:\/\/harchi90.com\/netflix-said-to-be-on-acquisition-radar-of-this-tech-giant-microsoft-nasdaqmsft-netflix-nasdaqnflx\/","title":{"rendered":"Netflix Said To Be On Acquisition Radar Of This Tech Giant – Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX)"},"content":{"rendered":"
Netflix Inc. <\/strong>NFLX<\/span> has shed over 52% for the year-to-date period even as the company has embarked on a turnaround plan following a massive loss of net paid subscribers earlier this year. A report explored the possibility of the streaming giant being an object of interest to another large-cap tech company.<\/p>\n What Happened: <\/strong> software giant Microsoft Corp. <\/strong>MSFT<\/span> could make a shy at Netflix, given CEO Satya Nadella<\/strong>‘s <\/strong>past track record of pursuing inorganic growth or growth via acquisitions, Reuters reported.<\/p>\n See Also: <\/strong>Best Technology Stocks Right Now<\/em><\/p>\n Since assuming the reins of Microsoft in 2014, Nadella has been focusing on pricey acquisitions, the report said. The company’s purchases under him included mojang<\/strong>the company behind the Minecraft game, professional networking platform LinkedIn <\/strong>and AI software developer nuance<\/strong>. Microsoft-Netflix \u2013 Best Fit? <\/strong> <\/strong>Microsoft and Netflix are already aligned, with the latter having roped in the former as an advertising partner for its new ad-supported subscription service. The report also noted that Microsoft President Brad Smith <\/strong>sits on Netflix’s board.<\/p>\n The software giant could reportedly be motivated by its desire to offer a video game streaming service over multiple devices.<\/p>\n The report also highlighted Microsoft’s affordability, as its market value is about 13 times of that Netflix. With a 30% premium, Netflix’s enterprise value could be about $190 billion compared to Microsoft’s current market cap of $1.8 trillion, it noted.<\/p>\n The report also said the deal is unlikely to face significant regulatory hurdles in the US and Europe. On the flip side, cost savings could be meager after taxing the $8 billion operating profit analysts project for Netflix. The report suggests the implied return on investment would only be half of Microsoft’s 8% average cost of capital.<\/p>\n Price Action: <\/strong>Netflix ended Tuesday’s session at $288.19, down 0.04%, while Microsoft shares added 0.56% before closing at $241.80, according to Benzinga Pro data.<\/p>\n Read Next: <\/strong>Sharing Netflix, Amazon Prime Password With Family Or Friends? You Are ‘Breaking The Law’ In This Country<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Netflix Inc. NFLX has shed over 52% for the year-to-date period even as the company has embarked on a turnaround plan following a massive loss of net paid subscribers earlier this year. A report explored the possibility of the streaming giant being an object of interest to another large-cap tech company. What Happened: software giant …<\/p>\n
Microsoft has now agreed to buy Activision Blizzard Inc. <\/strong>ATVI<\/span>although the deal has been stymied by regulatory hurdles.<\/p>\n