Netflix shares rise on rumor of Microsoft takeover
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Netflix can be found on millions of smartphones |
While there could be plenty of other innocent reasons for Hasting's action, the drop in Netflix shares by more than 50% since the beginning of the year has made the company a much better value for a company interested in buying it. With a market cap of $3.7 billion, Netflix is certainly affordable for Microsoft which is sitting on $66 billion in cash and equivalents as of its latest quarterly report. Even figuring a healthy premium for Netflix holders into the equation, Redmond based Microsoft could easily make this an all-cash deal.
Why would Microsoft be interested in Netflix? It could have something to do with content for the Xbox 360 as Microsoft turns the game console into a home entertainment device. It also could be a way for Microsoft to counter Google's ownership of YouTube which has become a staple on iOS and Android smartphones. The red Netflix square icon can now be found on most smartphones as well, and buying Netflix would give Microsoft an way to reach millions of smartphone screens.
source: Forbes
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19 Comments
1. sorcio46 posted on 26 Oct 2012, 15:53 9 13
Microsoft no, get away from a decent service provider ! You can only ruin things !
3. e.wvu (unregistered) posted on 26 Oct 2012, 15:58 6 6
You call Netflix descent? They've been terrible lately.
5. Lift_Off posted on 26 Oct 2012, 16:29 8 1
Ya what are you talking about decent? Netflix is a complete letdown now. They used to have a lot of great movies and such, but now they have only a couple good movies and TV shows. Maybe Microsoft can change it
9. meowcenary posted on 26 Oct 2012, 19:34 2 3
Well it depends on how open you are and willing to explore different genres. If you are narrowly focused and only go for mainstream items, then it would suck. Personally i've always found something good/interesting to watch on netflix.
6. Bilpocalypse posted on 26 Oct 2012, 16:51 11 1
They haven't destroyed Skype yet. Just saying.
16. Mxyzptlk posted on 27 Oct 2012, 09:54 1 0
I like this. It'd mean MS making even more money off Android from license agreements and Netflix.
2. PAPINYC (limited) 4 days ago posted on 26 Oct 2012, 15:57 6 2
If Microsoft gets their hands on Netflix they'll remove the "Copy & Paste" feature [again]…
7. snowgator posted on 26 Oct 2012, 17:15 5 0
Okay, I know it is a rumor and all, but....
Holy Selling Point, Batman!! The built in entertainment value is indeed intriguing, and easily fits into the ecosystem MS is trying to build. It would be worth twice the price they are talking about to get a leg up on this content.
Google has done such a great job building an entertainment and information empire. Apple is not sitting still. MS would be wise to come off some of that cash and make it happen.
11. corporateJP posted on 26 Oct 2012, 19:44 0 7
"Wise" is usually something Microsoft's portfolio lacks.
14. Owlet posted on 27 Oct 2012, 01:11 2 1
Yeah, that's how you get to sit on 66 billion, right?
17. corporateJP posted on 27 Oct 2012, 14:29 0 2
No, you sit on $66 billion because you had a monopoly for the better part of twenty years and spent very little money out of the funds, but when you do, you waste a bunch on buying an overpriced marketing firm that didn't add up to it's hype and a couple of software firms that didn't do much for your core business.
Do your homework before you flame, just like the other five fanboys on the thumbs-down button.
18. Owlet posted on 27 Oct 2012, 14:54 1 0
I see you know a lot about business (being "corporateJP" and all), and how to do it the right way, unlike MS. How many billions did that put you on? Doing it the right way?
OK, I'll go do my homework, so I can start doing business the foolish way MS has been doing. Maybe I'll get my first billion ;)
P.S. Not sure what fanboy or girl it makes me... Windows? Android? Netflix? Maybe even rottern fruit....
8. InspectorGadget80 posted on 26 Oct 2012, 17:17 2 7
If M$ purchase NETFLIX more subcribers will leave and would mess up their pricing. Just glad I left NETFLIX when they got rid of their unlimited dvd/streaming plan
12. MorePhonesThanNeeded posted on 26 Oct 2012, 22:19 1 1
Not sure the point of MS buying Netflix unless they want to somehow offer it on 360..oh wait...it's already on 360, PS3 and any blasted computer you can use. Don't see the point of this unless MS want to have Netflix to itself and that would hurt them more than work for them no matter how you slice it up.
15. speckledapple posted on 27 Oct 2012, 02:23 2 0
Netflix has its flaws but it is at least a respectable offering. I think Microsoft would be foolhardy to do that now. However, that does not mean they are not ripe for a takeover in the future. Time will only tell how their content library continues.
19. downphoenix posted on 29 Oct 2012, 20:08 0 0
If Microsoft buys out Netflix, Im okay with that, UNLESS they disable netflix support on PS3. If they do that, then I will still be okay with if they allow Netflix on my 360 without having to subscribe to Gold. If they do neither, then bye bye Netflix subscription!
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