NEW YORK: Satya Nadella never stops expanding his ideas. The CEO of Microsoft (MSFT.O) has been aggressively acquiring new companies. By 2023, he’ll probably have added Netflix (NFLX.O) to the list.
Nadella reportedly started a costly buying binge since being elevated to the company’s corner office in 2014. The $2.5 billion purchase of the Minecraft game’s development studio marked the beginning of the process.
Later, Microsoft spent $26 billion buying LinkedIn and $20 billion on the speech recognition and AI software company Nuance. At $69 billion, Activision Blizzard (ATVI.O) was by far the largest disclosed target.
Against American trustbusters, Microsoft is vehemently defending its right to acquire the business that created “Call of Duty.”Its proximity to the video game system Xbox has given rise to regulatory worries about market domination.
Owning Netflix would be a sensible strategic decision and presumably be more well-liked in Washington and Brussels, even if Nadella is unsuccessful in acquiring the video game company owing to competition.
The two businesses already work closely together. Netflix chose Microsoft as its advertising partner for a fresh subscription service that is financed by advertising. The head of Microsoft, Brad Smith, also serves on the board of Netflix. The goal of a deal includes Microsoft’s desire to provide a video game streaming service across various devices.