Netflix chose tech giant Microsoft to offer its new ad-supported subscription option. This subscription option will allow Netflix to offer subscriptions at a lower cost and increase subscriber base per plan. However, an analyst has confused the minds, saying that this deal between Netflix and Microsoft may have a hidden agenda. According to the allegations, Netflix, which has recently had problems with the number of subscribers, may be sold and transferred to Microsoft.
“NETFLIX MAY BE LOOKING FOR AN EXIT”
It is said that by establishing friendly relations with Microsoft, Netflix will open a door for a future acquisition. “Netflix may be looking for an outlet,” senior analyst Laura Martin told Yahoo Finance Live. Expressing that there may be bigger things here, Martin said, “Netflix is trying to get closer to Microsoft in the hope that after Microsoft digests Activision’s purchase, it will return and buy Netflix.”
The analyst continued, explaining that no other company that Netflix could partner with would be able to make $100 billion acquisitions due to financial restrictions or regulatory issues.
Martin’s prediction came after Microsoft questioned Netflix’s decision due to its lack of experience in the third-party ad technology business.
Finally, Martin predicted that the ad subscription won’t launch until the third quarter of 2023.