Microsoft to acquire Netflix: report

Technology company Microsoft is considering the acquisition of online video service Netflix, according to a report by Forbes.

The move would be one of the most significant purchases in the technology and television space and comes after Netflix chief executive Reed Hastings announced that he was stepping down from the Microsoft board.

Hastings announced three weeks ago that he would step down after the company’s annual meeting of shareholders in November. “I’ve decided to reduce the number of boards I serve on, so that I can focus on Netflix and on my education work,” he said.

However, Forbes reports that Microsoft is considering an offer of $90 a share, which saw Netflix shares increase by 13% to $70.

The move also comes as Netflix users will be able to stream the service through the new Windows 8 application and would add a boost to Microsoft’s plans to expand the amount of content it offers through its video game console the Xbox 360.