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After the Activision deal closes, Microsoft plans to acquire Netflix
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It looks like Microsoft's shopping cart isn't going to stop with the completion of the deal with Activision Blizzard, and there's still more to come, including the entertainment network Netflix. That's according to a report published by news network Reuters today.
Microsoft is ramping up its diversified presence in the technology space through an acquisition spree that began in 2014 when it bought the developer of the popular game Minecraft for $2.5 billion. It later bought popular social media platform LinkedIn for $26 billion and speech recognition and artificial intelligence company Nuance for $20 billion. The acquisition of Activision Blizzard was its largest announced acquisition to date, for $68.7 billion.
And at a time when Microsoft is struggling to complete the acquisition of Activision Blizzard, there are schemes going on behind the scenes to extend the acquisition of the entertainment network Netflix. Where the source indicated that even if the acquisition of Activision fails, the acquisition of Netflix will have strategic dimensions studied by the company. Especially since such a step would be easy to obtain in Washington and Brussels.
It may be easier than we expect, especially since there is already a convergence between the two companies. Netflix has chosen Microsoft as an advertising partner to promote its new ad-supported subscription service. Also, don't forget that Microsoft CEO Brad Smith has a prominent stake in Netflix shareholders.
In addition, the Netflix network has a cloud service that is the strongest of its kind, and with the launch of the gaming service recently, the company could be the focus of Microsoft's ambitions, which is trying to expand significantly and fundamentally in the cloud streaming aspect.
Microsoft's acquisition of a major entertainment network like Netflix would be a big move that would be no less powerful than its acquisition of Activision Blizzard, but it could be easy to pull off for the reasons we mentioned above.
Netflix's market cap as of now is around $1.27 billion, so will Microsoft be able to afford to pay that huge amount to acquire the entire network? And most importantly, will it encounter obstacles preventing the deal from closing, as is happening now with the Activision Blizzard deal?
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