One of the world’s leading companies in learning technology is Microsoft. Microsoft is a multinational technology company based in the United States that makes personal computers, computer software, consumer electronics, and related services.
Pay attention to the fact that Netflix is an over-the-top streaming service based in the United States. Los Gatos, California, is where the business is headquartered.
The world wants to be entertained by Netflix. Whatever your taste, any place you live. It lets you watch great movies, documentaries, and TV shows.
Additionally, Microsoft acquires Netflix, which provides a selection of award-winning anime and television shows. However, when it comes to Microsoft acquisitions, his purchase of the well-known video game Mine Craft for $2.5 billion is the initial step.
Microsoft then bought LinkedIn for $26 billion and Nuance, a company that makes speech recognition and artificial intelligence, for $20 billion. Additionally, $69 billion was primarily intended for Activision Blizzard.
In the meantime, Microsoft is competing with American trust regulators to acquire Call of Duty.
As a result, it now falls under the Xbox game console’s umbrella, which raises concerns about regulatory dominance.
Owning Netflix is a smart strategic move that will facilitate sales in Brussels and Washington, even if Microsoft loses its video game business to market competition.
Netflix
Additionally, both businesses hold solid positions in the market. Brad Smith, Netflix’s upcoming ad-supported subscription service, has chosen Microsoft as an advertising partner. In a similar vein, the president of Microsoft is also on the Netflix board of directors.
The fundamental objective behind the arrangement is for Microsoft to make its computer game real time feature accessible on various gadgets.
On the other hand, Netflix has a great and extensive schedule: Spry Fox developer has been acquired by Reed Hastings, co-head of the company, making it his sixth studio. If Microsoft became a part of their empire, the ambition behind this deal would accelerate.
On the other hand, it’s not hard to imagine a bundle that includes both streaming television and video games. In point of fact, Netflix’s market capitalization is only 13 times that of Microsoft.
As of December 1, Microsoft, a tech giant, can raise up to $1.8 trillion. At a 30% premium, the Netflix company is worth almost $190 billion. However, it is extremely challenging to locate significant cost savings.
After generating $8 billion in operating income from taxes, analysts anticipate that Netflix will generate a significant return on investment in 2024, which will be almost half of his 8% weighted average cost of capital. doing.
