Microsoft is mulling a bid for online video service Netflix, according to a report by Forbes, as competition in the video on demand sector heats up. The move would be one of the most significant purchases in the technology and television space.
The rumour mill began churning earlier this month when Netflix CEO Reed […]
Microsoft is mulling a bid for online video service Netflix, according to a report by Forbes, as competition in the video on demand sector heats up. The move would be one of the most significant purchases in the technology and television space.
The rumour mill began churning earlier this month when Netflix CEO Reed Hastings announced that before Thanksgiving he would leave Microsoft’s board to focus on his company.
The idea being that “Microsoft’s board couldn’t seriously entertain making a bid for Netflix with its CEO sitting in the room,” according to the report.
Hastings announced three weeks ago that he would step down after the company’s annual meeting of shareholders in November. “I’ve decided to reduce the number of boards I serve on, so that I can focus on Netflix and on my education work,” he said.
However, Forbes reports that Microsoft is considering an offer of $90 (€70) a share, which saw Netflix shares increase by 13 per cent to US$70.
Neither company would comment on the matter.
The move also comes as Netflix users will be able to stream the service through the new Windows 8 application and would add a boost to Microsoft’s plans to expand the amount of content it offers through its video game console the Xbox 360.
