Netflix stock jumps up 13 percent over Microsoft buyout rumors

The Netflix movie and TV streaming service has taken its fair share of jumps in terms of its stock price over the past year or so. Today, the company got an unexpected, if perhaps temporary, piece of good news as its shares were boosted by over 13 percent in trading today.

What happened? Forbes reports that the stock price most likely went up due to rumors that Microsoft might be in acquisition talks with Netflix. Those rumors actually started earlier this month, when it was announced that Netflix CEO Reed Hastings would not seek another term on Microsoft's board of directors.

However, there is no real evidence that Microsoft is in any kind of buyout talks with Netflix. For the moment, it seems that the sharp spike in Netflix's stock price was based mostly on pure speculation by stock traders rather than any kind of inside information.

Netflix recently announced its Windows 8 app, and the company said that they designed the app to take advantage of the graphics acceleration features that can be found in Windows 8-based hardware. We will be posting an interview with a Netflix public relations rep about the company's Windows 8 app later this weekend.

Source: Forbes.com | Image via Netflix

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20 Comments

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Would this mean no more Netflix for PS3, Wii or other devices? Forcing us to get an XBox Live account? That would be horrible. I really like Netflix but I don't want Microsoft anywhere near it.

TRC said,
Would this mean no more Netflix for PS3, Wii or other devices? Forcing us to get an XBox Live account? That would be horrible. I really like Netflix but I don't want Microsoft anywhere near it.

Should remain platform agnostic , Skype did.

TRC said,
Would this mean no more Netflix for PS3, Wii or other devices? Forcing us to get an XBox Live account? That would be horrible. I really like Netflix but I don't want Microsoft anywhere near it.

Confusing Microsoft with Apple or Google it seems.

Microsoft still makes their premium Office for Macs as a starting example, they also allow a lot of other 'rental' video services on Xbox, when it competes with them directly. They provide iPhone and Android Apps that they could have kept exclusive to Windows Phone, and on and on.

I think re branding Netflix as Xbox Video would be a bad move. Look how well Skype has done, if they get Netflix I think they would follow the same path as Skype.

Gaffney said,
I think re branding Netflix as Xbox Video would be a bad move. Look how well Skype has done, if they get Netflix I think they would follow the same path as Skype.

i wouldn't rebrand it but use something like "xbox video, powered by netflix"

So more movies and Asian movies with subtitles working for other devices? Or do we need to still learn Asian languages? Until than Microsoft better fix this problem or Apple should buy out Netflix.

Putting aside the concerns of dealing with Netflix's DVD business, I like the Netflix buyout rumors because the service compliments Xbox Video's rental/purchase store.

Microsoft did say they are becoming a devices and services company and Netflix is certainly a service.

FoxieFoxie said,
Rdio + Netflix, yes, pls

What the hell does Microsoft get from Rdio? They already have Xbox Music which does more and is probably available in more markets. And they have the people who created Rdio from buying Skype.

Edited by Avatar Roku, Oct 27 2012, 7:12am :

Avatar Roku said,

What the hell does Microsoft get from Rdio? They already have Xbox Music which does more and is probably available in more markets. And they have the people who created Rdio from buying Skype.

Why did Microsoft buy Skype when Windows Live Messenger can let you do audio and video chat?

USERS. And a lot of paying ones too. Also, there's a network effect that you get when lots of users are using the same service that lets you share with others, it's hard to leave.

Netflix $3.86B market cap thanks to the recent rally.

Interesting if it happens, XBOX has no streaming option. And if they roll Netflix into XBOX Live for $60/yr plus all the other goodies then great. Because right now personally there's no way I'm paying for XBOX Live

mmjm said,
Netflix $3.86B market cap thanks to the recent rally.

Interesting if it happens, XBOX has no streaming option. And if they roll Netflix into XBOX Live for $60/yr plus all the other goodies then great. Because right now personally there's no way I'm paying for XBOX Live

Xbox does have a streaming option, but it's not a subscription.

I think you meant they have no subscription option.

tytytucke said,
They would've bought them out by now if they wanted them...

That statement doesn't make sense at all.

That's like saying I would have bought the car I like by now if I wanted it...

That doesn't always apply, especially when it comes to business.

Edited by John S., Oct 27 2012, 6:53pm :