Microsoft, Not Amazon, A More Likely Netflix Buyer

Reed Hastings, Netflix CEO

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.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.