Netflix (NFLX) shares shot up yesterday on rumours that Amazon (AMZN) might be interested in buying the movie rental service.
Maybe so. But Kara Swisher says Microsoft (MSFT) might be a more likely buyer. Why?
Because Netflix’s physical presence in many states could force Amazon to charge sales tax in more places — something Amazon hates doing.
And because Netflix’s partnership with Microsoft to stream videos to the Xbox 360 has been such a huge hit — a rare taste of success in the entertainment business for Microsoft.
Swisher: [The deal is such a hit] that Robbie Bach–who is President of Microsoft’s Entertainment and Devices division, which includes the Xbox business–has been meeting with Netflix CEO and Co-founder Reed Hastings in recent weeks about what else the pair can do together to expand its current partnership. …
While an acquisition would be a much bigger move, some at the software giant think it would necessarily be such a bad one for Microsoft, which has long been seeking to forge better ties in the entertainment arena.
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