Microsoft will buy Netflix in 2012.
That's at least what market research firm IDC predicts.
Frank Gens, IDC chief analyst and senior vice president, said such a merger is logical in light of Netflix's reduced market value and expected losses in 2012 from growing content-licensing fees, Investor's Business Daily reported.
"In 2012, part of Microsoft's challenge is to counter what Apple and Amazon have done and what Google is building up – a really strong media and content marketplace," the report quoted Gens as saying. "Without a media and content cloud, the competitiveness of Microsoft's mobile platforms could be greatly diminished."
If Microsoft actually made a bid for Los Gatos, Calif.-based Netflix, it would likely cost the software giant significantly less money compared to the summer when investors were paying big bucks for a piece of the company.
Netflix's market value has shrunk from $16+ billion in July to about $3.5 billion. Its stock price is now just a shadow of its former self. Netflix currently is trading at $66.92 as of 1:02 p.m. ET Friday. By comparison, Netflix's stock closed at $298.73 on July 13.
