Ok, there were stories back as far as January of this year speculating that microsoft should or would buy Netflix. Since then Netflix has decided to separate the Streaming Business from the DVD rental by mail part of the company. Maybe Reed hastings wants to keep the core part of the business that made Netflix what it is today, and still cash in from a buyout from Microsoft. If this is true, it would make sense. Microsoft needs content, lots of it and with smart aquisitions such as Skype, i wouldnt doubt this would happen.
Personally, i think this could save the streaming netflix. If microsoft can get the product more content, and then find a way to challenge apple’s iTunes with a large music library it could be just what the doctor (read investors) ordered.