Netflix Stock Rises on Microsoft Acquisition Rumor

CommanderFrank

CommanderFrank

Cat Can't Scratch It
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Netflix got a much needed bump in its stock prices merely on speculation from an unsubstantiated rumor that Microsoft was contemplating acquiring Netflix. On the rumor alone, Netflix stock prices rose 13% on Friday which begs the question how high would the stock have climbed if the rumor had been confirmed.

The rumor comes during the same week that Netflix reported that it had missed third-quarter subscriber projections
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That would be interesting because at this time: Microsoft does not have a competing video streaming service like Apple (iTunes), Amazon, and Google.

I worry though what it means to the competition, especially since Android have Netflix apps.
 
I would love for a big player like Microsoft to buy Netflix and start throwing their weight around for licensing streaming content and pushing back on cable company whining.
 
InorganicMatter said:
I would love for a big player like Microsoft to buy Netflix and start throwing their weight around for licensing streaming content and pushing back on cable company whining.
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Agreed. Streaming is the future and it's dominance in the media market is almost guaranteed. One of the problems is they need a heavy hitter in their corner to help pry reasonable licensing agreements out of the studios and such.
 
octoberasian said:
That would be interesting because at this time: Microsoft does not have a competing video streaming service like Apple (iTunes), Amazon, and Google.

I worry though what it means to the competition, especially since Android have Netflix apps.
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It does? It has for a long time. The Zune Video service however has not been an OS-level feature on the desktop (likely out of fear of anti-trust action). And it's Xbox Video now. The store also hasn't directly been on Windows Phone for some weird reason (likely ability to download items in the background for performance reasons), but it will now be for Windows Phone 8.
 
dagamer34 said:
It does? It has for a long time. The Zune Video service however has not been an OS-level feature on the desktop (likely out of fear of anti-trust action). And it's Xbox Video now. The store also hasn't directly been on Windows Phone for some weird reason (likely ability to download items in the background for performance reasons), but it will now be for Windows Phone 8.
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That's the first time I've heard of Zune Video service. Probably because it wasn't as widely known compared to competing services? I've known of 360's streaming services, but nothing that garnered more than a whisper for Windows platform and Windows Phone platform.

I know about the new Xbox service, which is a good start. However, if they're going to even consider competing against the likes of Apple, Google, and Amazon, they need a much more compelling platform with competing services on par with those three. At the same time, an accessible [regardless of platform it's on] and affordable service, with a variety of content.
 
To work out how much Microsoft will pay for it, take Netflixes actual worth and multiply by 8500. Pretty sure thats how they got to the amount they paid for Skype. :D
 
stupid rumor stock manipulation.

Someone should create a rumor that AMD is being bought out for $8 a share, and buy amd stock at the same time, then sell it the same day, to make a 4x profit.
 
dr.kevin said:
stupid rumor stock manipulation.

Someone should create a rumor that AMD is being bought out for $8 a share, and buy amd stock at the same time, then sell it the same day, to make a 4x profit.
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On the off chance you have the power and cash to make that happen, you would end up in jail over it. A really nice jail, but still jail.

I use my Android phone and tablet for Netflix, I would hate to see MS purchase it out of fear of what they might possibly do. But on the other hand, MS buying Netflix would likely give the service far more bargaining power with the content owners
 
And yes I relize the episode didnt have anything to do with MS or netflix directly. But about streaming in general.
 
Apple has a better shot at buying Netflix out than Microsoft. Once sold to either party though. Netflix would become a loser company. Microsoft would try and fail. While Apple would just integrate it into Itunes.
 
Apple doesn't want streaming video. all their licences are in place and centered around itunes purchased and rentals. they would more likely just extend those licenses and leverage the Apple TV to sell hardware than buy Netflix even if the had the money.

Microsoft buying it to add a streaming component to the Xbox store does make a lot of sense with them deprecating Media Center and already having a platform in the Xbox plus Microsoft would be ok with licence negotiations since they do the DRM for the content industry.

Microsoft also has a lot of money to buy them if they wanted and while they would have to renegotiate their licenses for the streaming rights, they don't sell a lot of content as it stands through Xbox store versus Apple and iTunes but the still have the cash to be a viable buyer.

The question isn't really to consider how it would work in the USA but where Netflix has stumbled is worldwide expansion and if MIcrosoft wants to extend into the world wide market as a streaming video provider on the heels of a just launched Windows 8 / Surface and a soon launched Windows Phone 8 which which are both talked about as a big shift for them and must succeed.

I'm not sure if this rumor was true that Microsoft wouldn't has bought them and integrated them into Windows 8 ,the phone and Xbox already versus relaunching the Zune stuff as Xbox Store.

I think Microsoft wants to get it's ducks in a row and see the holidays through and this really is just rumor.
 
Oh good can't wait to go from paying $8 for full access to M$ charging $4.99 per episode for 4 hours.
 
FYMbyIce said:
Oh good can't wait to go from paying $8 for full access to M$ charging $4.99 per episode for 4 hours.
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That's one other fear I have. It's the same fear I had with the Skype acquisition-- would my yearly subscription fees increase or change. Luckily, it hasn't.

The $7.99 a month fee for Netflix is fine. It's perfectly fine. I really would not want to see Microsoft increase that by any amount. If they did buy Netflix and bowed down to movie studios and TV stations to double that fee, I'd definitely drop Netflix at the same time. I already have enough things to pay as is.
 
FYMbyIce said:
Oh good can't wait to go from paying $8 for full access to M$ charging $4.99 per episode for 4 hours.
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If they did that there would be a major backlash from consumers. Just look at how many people cancelled their Netflix subscription when they made a minor change to their pricing structure a year or 2 ago (from $10/mo to $8/mo for each service, or $15/mo for both).
 
I just hope it ends with them getting some content. Right now, I just ran through the "top 100 movies of all time," and not 1 was available on netflix.... It's been really difficult to find stuff to watch lately. Even the TV shows are only hitting netflix a year or 2 after they air.
 
price increase is fine... as long as content increases as well.. and I am not talking about adding more old movies to the library.. they need to show more New movies and show current shows like hulu does so I don't need to subscribe to both.
 
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