Microsoft and Internet Television
Rumors are building that Microsoft is preparing to make a bid for Netflix. Rumors that have helped the Netflix stock price jump considerably. But does the unsubstantiated rumor make any sense, or is it just a shot in the dark?
Microsoft Buying Netflix?
The rumors that Microsoft was preparing to buy Netflix reportedly spread like wildfire around Wall Street last week, with the tipping point likely to have been Netflix CEO Reed Hastings stepping down from the Microsoft board of directors. An incoming acquisition bid could be the reason for this move, but there are many other possible reasons too, including the fact that Hastings is too busy to fulfill his role.
CNET is reporting that the rumors claimed Microsoft is willing to pay $90-per-share to get Netflix. Which seems reasonable, especially as the company is now on the rise again after its troubles of 2011. The rumors meant that Netflix stock rose by over 10 percent on Friday (Oct. 26).