By Sam Boughedda
Reuters said in an opinion piece on Tuesday that they believe Microsoft (NASDAQ:MSFT) will continue its business buying spree in 2023 and add Netflix (NASDAQ:NFLX) to its list.
"Look for him to add Netflix NFLX.O to the list in 2023," they said of Microsoft CEO Satya Nadella.
They explained that Nadella has been on a "pricey shopping spree" since his 2014 promotion to the top job at the technology giant, starting with the $2.5 billion acquisition of the firm behind Minecraft, while they later acquired LinkedIn for $26B and also agreed on a deal to acquire gaming giant Activision Blizzard (NASDAQ:ATVI), which is experiencing some pushback.
"Even if Nadella loses out on the video-game company for competition reasons, however, owning Netflix would make strategic sense and probably be an easier sell in Washington and Brussels," the report said, which added that the two are already closely aligned, with Netflix choosing Microsoft as its advertising partner for its new ad-supported tier.
In addition, the report also pointed to Netflix's ambition in the gaming industry matching Microsoft's, which wants to offer a video-game streaming service over multiple devices.
"With a market value 13 times that of Netflix, as of early December, $1.8 trillion Microsoft can afford Netflix," the piece stated. It added that Nadella has previously shown a willingness to be a bold dealmaker, and as a result, "it's easy to believe Microsoft will set its sights on Netflix."