Netflix will be next on Microsoft’s shopping list.
NEW YORK, Dec 20 (Reuters Breakingviews) – Satya Nadella keeps thinking bigger.
Microsoft’s (MSFT.O) chief executive has been buying new businesses at an impressive clip.
Look for him to add Netflix (NFLX.O) to the list in 2023.
Since his 2014 promotion into the technology titan’s corner office, Nadella has embarked on a pricey shopping spree.
It started with the $2.5 billion acquisition of the company behind the hit game Minecraft.
Later, Microsoft bought LinkedIn for $26 billion and the speech recognition and artificial intelligence software developer Nuance for $20 billion.
Activision Blizzard (ATVI.O) was by far the largest disclosed target, at $69 billion.
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Microsoft is busy fighting U.S.
trustbusters for the right to absorb the “Call of Duty” creator.
Putting it under the same roof as gaming console Xbox has led to regulatory concerns about market dominance.
Foreign [Music] Shopping list New York December 20 Reuters breaking news Satya Nadella Keeps thinking bigger Microsoft’s msft.o Chief executive has been buying new Businesses at an impressive clip look For him to add Netflix Nflx.o to the list in 2023 since his 2014 promotion into the technology Titans corner office Nadella has Embarked on a pricey shopping spree it Started with the 2.5 billion acquisition Of the company behind the hit game Minecraft later Microsoft bought LinkedIn for 26 billion and the speech Recognition and artificial intelligence Software developer Nuance for 20 billion Activision Blizzard at B.O was by far The largest disclosed Target at 69 Billion to stay up to date with latest Top stories make sure to subscribe to This YouTube channel by clicking the Button above this video Microsoft is Busy fighting U.S trust Busters for the Right to absorb the Call of Duty Creator Putting it under the same roof as gaming Consoles box has led to regulatory Concerns about market dominance even if Medela loses out on the video game Company for competition reasons however Owning Netflix would make strategic Sense and probably be an easier sell in Washington and Brussels the two
Companies are already closely aligned Netflix chose Microsoft as its Advertising partner for a new Advertising supported Subscription Service Microsoft president Brad Smith Also sits on the Netflix board part of The rationale for a deal is that Microsoft wants to offer a video game Streaming service over multiple devices Netflix has its own big plans in gaming In 2022 the company co-led by Reed Hastings snapped up developer spry Fox Its sixth in-house Studio becoming part Of the Microsoft Empire would Supercharge those Ambitions a bundle With streaming TV and games together is Not hard to Fathom with a market value 13 times that of Netflix as of early December 1.8 trillion dollar Microsoft Can afford Netflix a 30 premium would Value the Netflix Enterprise at nearly 190 billion dollars significant cost Savings would be hard to find however And after taxing the 8 billion dollars Of operating profit that analysts Project for Netflix in 2024 the implied Return on investment would only be half Its eight percent weighted average cost Of capital for Morningstar analysts Nadella has defied such back of the Envelope Financial logic before and if Nothing else he has shown a willingness To be a bold deal maker on that basis It’s easy to believe Microsoft will set
Its sights on Netflix the U.S Federal Trade Commission on December 8 sued to Block Microsoft’s 69 billion acquisition Of video game developer Activision Blizzard arguing that the combination Would hurt consumers because it would Give the software company an unfair Edge Against competitors of its box gaming Consoles and cloud gaming business are Standards the Thompson Reuters trust Principles opinions expressed are those Of the author they do not reflect the Views of Reuters News which under the Trust principles is committed to Integrity Independence and freedom from Bias [Music]