Microsoft has been adding several new businesses under its belt for some time now and now the company may be looking to add Netflix to the list in 2023, according to a report by Reuters.
The company started off with the purchase of the popular video game, Minecraft, for $2.5 billion. Later, Microsoft took over LinkedIn for $26 billion and Nuance, a speech recognition and artificial intelligence developer, for $20 billion.
However, the most prominent buy was Activision Blizzard for $69 billion.
Microsoft is also busing fighting U.S trustbusters for the right to add the popular first person shooter, Call of Duty, franchise under its belt alongside their Xbox gaming console.
However, US regulators are not very open to the idea over concerns of market dominance, but owning Netflix may be easier for the company and would make a lot more strategic sense.
It is pertinent to mention that Netflix and Microsoft already have close ties as the streamer picked the software giant as its advertising partner for a new ad-based subscription service.
Furthermore, Microsoft President, Brad Smith, is already a part of the Netflix board and the deal makes sense as the company wants to offer video-game streaming services on multiple devices, which would be possible through Netflix.
Netflix has been delving into the gaming industry itself and company co-lead, Reed Hastings, has already taken over Spry Fox, its sixth in-house studio. However, these ambitions would be accelerated once both companies join hands.
Moreover, the purchase of video streamer won’t be difficult for Microsoft as it already holds a market value of 13 times that of Netflix.
As per the report, a 30% premium would value Netflix at nearly $190 billion, while Microsoft holds the current value at $1.8 trillion (early December).