It seems like every month or so there is a rumor about Amazon, Apple, or Microsoft buying Netflix, but the timing of this one is interesting. Netflix CEO Reed Hastings recently resigned from the Microsoft board, and the increasing war for content between Apple, Google, Amazon and Microsoft would make Netflix a strategic asset for any of these companies.
Eric Savitz from Forbes shares his thoughts on a Microsoft aquisition of Netflix:
While competition has increased, the company still has an iconic brand in streaming video and widespread distribution on almost every conceivable computer and consumer electronics platform: smartphones, tablets, PCs, TVs, Blu-Ray players, blenders. (OK, no blenders.) Microsoft has almost $69 billion in cash and investments. The company could pay 2x the current market cap, and still use less than 10% of the cash. (Although I would point out that a large chunk of that cash is outside the country, and basically inaccessible for U.S. acquisitions.)
Meanwhile, buying Netflix would be in keeping with Microsoft’s revamped philosophy on the Xbox 360, which treats the device more like an entertainment device and less like a video game console. I’d note that Microsoft has a track record here on shopping for Web brands: They paid $8.5 billion for Skype; and of course they tried in vain to buy Yahoo a few years back for an ungodly sum.
I'm wondering if Microsoft would buy Netflix to remove the Netflix service (or limit the features or selection) from Sony, Apple or Google devices to help move people to Microsoft computers, tablets, and phones.
via Home Media Magazine.
If Microsoft takes over Netflix, you will see an exodus of customers making the Quikster debacle look like a drop in the bucket. Microsoft will screw it up, just like everything else since Gates retired and handed the reigns over to Ballmer.
Posted by: Nikolai | October 29, 2012 at 04:36 PM
Ugh, god, all business considerations aside, I so hope this never happens.
Posted by: michaelant | October 29, 2012 at 06:51 PM
Much like the Skype acquisition, they would most likely just leave it be. Best case scenario is that they do rattle the sabers a little and Amazon gets off it's butt and starts to support Android on their instant streaming service (which occasionally has stuff that Netflix doesn't). A Microsoft owned Neflix would just further fuel the fires of competition.
Posted by: nate | October 29, 2012 at 08:20 PM
let them run back to DVDs were Netflix makes money
Posted by: Stroker Ace | October 29, 2012 at 09:33 PM
This would be like Dish buying Blockbuster...it wouldn't work.
Posted by: Stuie | October 29, 2012 at 11:50 PM
That would be a nightmare. I see how MS nickel and dimes everything on Xbox Live. I mean hell, just to watch Netflix on an Xbox 360 you have to pay for an XBL Gold membership on top of your Netflix fees. Content would suffer after awhile and subscription prices would go up. I really hope this doesn't happen.
Posted by: Professor Chaos | October 30, 2012 at 05:06 AM
A move like that would destroy Netflix. Microsoft has the touch of "turd". Everything they touch turns to sh*t.
Posted by: lpbbear | October 30, 2012 at 07:14 AM
The only winner would be bitTorrent.
Posted by: Mike | October 30, 2012 at 08:47 AM
Everything MickeyShit™ touches turns to shit.
Posted by: Schmye Bubbula | October 30, 2012 at 12:24 PM
But with Microsoft buyout would likely come headaches, restrictions, preferrence to xbox platform, In my opinion would not benefit consumers and THEY are the ones who subscribe and keep it afloat. I'd much rather have Google buy it.
Posted by: Noose | October 30, 2012 at 12:39 PM
"I'd much rather have Google buy it."
Yeah so they can monitor what you watch and sell the info to third parties.
Posted by: Moviegeek65 | October 30, 2012 at 03:48 PM
EXACTLY!! look what Microsoft did when they bought Danger (Maker of Sidekick Phones and their operating System) -- THEY KILLED IT and stripped it for parts!!
Posted by: ncmacasl | October 30, 2012 at 08:03 PM
Mike:"The only winner would be bitTorrent"
You nailed it, Mike.
Posted by: Bobber | October 31, 2012 at 12:06 PM
@Moviegeek65 Google doesn't monitor, and sell your stuff. They sell keywords, they will sell ads for comedies, dramas, or tv shows set in the 1980s with 2 male leads.
Posted by: Tvaddic | October 31, 2012 at 04:43 PM
I think that would be highly unlikely. The key to Netflix's success is it's universal availability. Suddenly restricting it to one set of devices would be a death wish on the owners part.
Posted by: Facebook App Developers | November 05, 2012 at 02:27 AM
It became a way for people to bring their so Educational lives to a better place.
Posted by: Custom iPhone Application | November 08, 2012 at 03:30 AM