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Netflix eyes foray into video gaming, hires former Facebook exec as gaming VP
New Delhi: Netflix is finally making the big move. Even as media conglomerates across the world slug it out to challenge its dominance in the streaming space, the US giant is gearing up for its next step. According to reports, Netflix is planning to expand beyond its traditional streaming business, and make its foray into video gaming.
On Wednesday, Netflix hired former Facebook, vice president, Mike Verdu, as VP of game development to lead its video games unit, reported Bloomberg. Verdu was previously Facebook’s vice president in charge of working with developers to bring games and other content to Oculus virtual-reality headsets.
He has previously served as senior vice president of EA mobile, president of studios and chief creative officer at Kabam, CEO of TapZen, and chief executive officer for Zynga from 2009 to 2012. At Netflix, he will report to chief operating officer Greg Peters.
The idea is to offer video games on Netflix’s streaming platform within the next year, Bloomberg quoted a person familiar with the situation. According to the report, the games will appear alongside current fare as a new programming genre — similar to what Netflix did with documentaries or stand-up specials.
The reports suggest Netflix will build its gaming team in the next few months, and it has “already started advertising for game-development related positions on its website”.
The company now has 208 million paid subscribers across the globe, up from 204 million last quarter, and the latest announcement could be its boldest move yet. The announcement comes at a time, when Netflix is looking at ways to catalyse its growth especially in saturated markets like the US. Analysts contend that the move could also enable the company to justify its price hike in the coming few months.
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Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
