| gtotheunit91 said: MS is buying Netflix after the ActiBlizz deal closes?! I don’t see that happening lol |
It's just a prediction, I still strongly doubt it, I don't think there's anything that points towards it and there's more than a few 'issues'
1. Microsoft has $107bn cash on hand, Netflix would likely cost around $180bn+ on the market when adding the premium, Microsoft would therefore either have to use stocks for the rest of the acquisition which isn't something they usually do, or rise a significant amount of extra cash, either way, a decent chance they blow through their entire cash in the bank.
2. Microsoft has never really expressed any desire in getting into this business and by that I mean the Hollywood/Film/TV business. They may want to expand since Xbox is their only consumer facing business but I feel like they are happy with that, I think they're happy with being a corporation first business, it's where they make all their money, I would be happy if that changed though, Lol.
3. Netflix's profit margins are way below Microsoft's which is probably an issue when you're acquiring a near $200bn company. Film/TV in general has slimmer profit margins than Games, for example, ABK Net Income in 2021 was $2.6bn in comparison to Netflix's $5.1bn but Netflix would cost more than $100bn extra to acquire.
4. It for those reasons is a bit of a risky investment, especially if other streaming services kick off, Netflix is great but also very lucky that they got in first. It might also be a factor to Microsoft who looking at Xbox loves owning their IPs, that a lot of Netflix's shows, they don't actually own the IPs for. You could say that Xbox has the IPs but few are proven in TV and already assigned elsewhere (Paramount, Amazon, etc).
Last edited by Ryuu96 - on 20 December 2022
