Hastings Addition To Microsoft's Board A Smart Move For Redmond

Reed Hastings, founder and CEO of Netflix (NFLX) and a renowned serial entrepreneur in Silicon Valley, is joining Microsoft’s Board (MSFT). It’s a superb move for Microsoft to bring on board a through-and-through decent and no-bullshit smart guy like Reed, not to mention the fact that the battle for the consumers’ living room is in full blast right now, and Microsoft is probably eying a partnership with Netflix. Hell, an acquisition could be nice too, but would that mean a conflict of interest for Reed, to sell Netflix to Microsoft?

Reed Hastings is much more than Netflix, though. He is an active educational philanthropist and board member of many non-profits. In addition, he was President of the California State Board of Education from 2000 to 2004. He has led successful statewide political campaigns for more charter public schools and easier passage of local school bonds. Reed served in the U.S. Peace Corps as a high school math teacher in Swaziland.

There are few entrepreneurs around who has thought more deeply about education, and his arriving in close proximity to Bill Gates would be beneficial in more ways than one for Microsoft, as well as for the Gates Foundation and its Education charter.

I am thrilled that Reed is finding the platforms necessary to make his impact.

Comments

[Rick Hanley:]

To buy Netflix, what would it cost Microsoft? With the current market cap at $1.6 billion, would the price be $2 billion? Is that a payback of 10 years? 20 years?

Does Microsoft want 1,500 new employees from Netflix? Remember that there is no material ability to reduce the 1,200 employees that work in the distribution centers. The core work in a physical DVD rental by mail model requires that envelops must be manually opened, discs physically handled/inspected, and then discs stuffed manually into envelops.

Separately, can Reed Hastings offer truly unbiased opinions to Microsoft while still working at Netflix? Won't there be some conflicts as he offers input on the global view of things to the board and top managers at Microsoft?

Hastings will leave Netflix while he is at the top and dedicate himself to new opportunies.

2007 Mar 29 02:52 PM