With the fall of Netflix, Microsoft could be interested in acquiring it

With the fall of Netflix, Microsoft could be interested in acquiring it

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We can’t say that Netflix is going through one of its best moments, since after presenting its financial results and subscriber forecasts, it saw how its actions went from costing $680 in November 2021 to $197 nowadays. And it is that it was a few months ago when the well-known streaming company experienced an overwhelming stock market crash losing more than $50 billion of its value. Given this, it is rumored that microsoft would be interested in acquiring it, and in turn, Netflix would see a quick way out of its current situation.

The fall of Netflix on the stock market has been in the news for months and it is not for less, since lost 70% of its value compared to last year. This was due to drop in subscribers compared to the typical growth experienced by the streaming platform. That said, one of the actions Netflix took was to announce a new subscription plan with advertisingbut to a most affordable price , to try to stop the flight of users. Subsequently, at the end of June, the platform announced that it was looking for partners Y microsoft will be your partner on this path linked to paying a subscription service with embedded advertising.

Microsoft joins Netflix. The beginning of a great friendship?

On the one hand, we have a Microsoft, which is in the process of acquiring Activision Blizzard and Kingfor a value of $72 billion. However, it is estimated that there are still a few months for that agreement to close. Meanwhile, Microsoft itself already offers a well-known and popular streaming service, the Xbox GamePasswhere we can access a large catalog of hundreds of games.

This has made a dent in the consumer market, since instead of buying games individuals at great cost, we can afford a monthly subscription cheap to access hundreds of them. This closely resembles the approach of Netflix a thousands of titles by streaming through monthly payment, leaving much cheaper than buying or renting movies. And here we see the first union between both companies, where Microsoft announced that it was team with netflix to help her in her new streaming model.

This was the one we mentioned before, a cheaper streaming, but that includes advertising. For this work, Microsoft was chosen as the exclusive partner who will take care of ads and technology. Additionally, Microsoft mentions that all Ads posted on Netflix they will be available on their own platform, so they also gain as they help Netflix to expand.

Microsoft could buy it to boost its streaming service

Microsoft Game Pass Netflix Buy Streaming

Microsoft got $10 billion in advertising revenue last year, which while it may seem like a lot, is nothing compared to the more than 160 billion Google. There is a lot of room for improvement here, and it is believed that Microsoft wants to push advertising as a form of revenue. Here, the current alliance agreement that exists between Netflix and Microsoft comes into play, but there is also an important factor.

Netflix is ​​in a bad placealthough its shares increased by fifteen% in recent days, they are far from their peak in 2021. Looking for a way out of this situation, the cheap subscription and having Microsoft as a partner is a good option. However, Microsoft could end up buying Netflix for $100 billionaccording to Laura Martinan analyst at Needham. If fulfilled, Netflix would get out of the situation where it is and Windows would be able to capture millions of new potential customers.

Netflix is ​​trying to get closer to Microsoft hoping that after Microsoft digests its acquisition of Activision, it will proceed to buy Netflix next.”

It would be an agreement where both would win and a subscription could be considered Netflix + GamePass, as a first idea. Or maybe they spend everything on advertising and we end up having both streaming services riddled with ads. Nobody really knows what will happen in the future and therefore, we will have to be attentive to the next movements. If it is done, it will be soon as things do not change, since Netflix is ​​seeing losing its throne before Prime Video in the United States, just taking a 1% advantage.

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