An analyst believes Microsoft could be in a good position to buy Netflix after the tech giant teamed up with the streaming service to offer its new subscription model with advertising.
A few days ago, we learned that Netflix was teaming up with Microsoft for its next ad-supported offering. The streaming service indicated that Microsoft would become its “ global technology and advertising sales partner when launching this cheaper option.
Ted Sarandos, co-CEO of Netflix, confirmed a few weeks ago that Netflix would soon launch a new formula with advertising, and we now know that Microsoft will be in charge of advertising. The arrival of this new cheaper formula with advertisements should allow Netflix to convince more users to subscribe to its platform, but such a rapprochement with Microsoft could also hide greater ambitions.
Also Read – Netflix: a subscription with advertisements would arrive by the end of 2022
Netflix would approach Microsoft for a takeover
An analyst believes that Netflix would not have chosen Microsoft randomly for its advertisements, since the American company would try to get closer to the giant with a view to a takeover. Indeed, Laura Martin, senior analyst at Needham, spoke about the deal with Yahoo and suggested there might be bigger ambitions here, namely the ability for Netflix to position itself for a friendly relationship with Microsoft and possibly open the door to an actual acquisition.
According to her, no other company that Netflix could have partnered with would be able to complete the $100 billion acquisition that the company needed for financial or regulatory reasons. ” It could be that Netflix is looking for a release said Martin. ” Netflix tries to approach Microsoft in hopes that after Microsoft digests its acquisition of Activision, it will turn around and then buy Netflix “.
As a reminder, Netflix has been struggling financially for the past few months after the company announced it had lost subscribers for the first time since 2011. Netflix also confirmed that it expects to lose millions more subscribers in the coming months.. A takeover by Microsoft could therefore ensure that Netflix continues to develop and create even more original content.