Netflix reportedly offered $500m for seven-year Xbox IP license

By Priya Raman

Netflix reportedly offered Microsoft $500 million for seven-year rights to license Xbox intellectual property (IP) for film and television adaptations, with Asha Sharma and other Xbox executives asking for $800 million before declining the proposal.

Puck reported that Bela Bajaria, Netflix’s former chief content officer, made the $500 million offer, citing sources. Bajaria left earlier this month, and Peter Rice, a former Disney and Fox executive, replaced her. Following Bajaria’s departure, the proposal was reportedly withdrawn, and Xbox is now pursuing smaller deals with additional partners.

Netflix declined to comment on the alleged offer. Xbox said: “We have received record-breaking interest in our I.P.; Netflix is a valued partner and we are excited for the forthcoming release of our Minecraft and Diablo animated series together, among other adaptations.”

What changes for studios and licensors?

The immediate change is a procurement signal, not a production green light. The withdrawn proposal would have placed Xbox IP under a seven-year licensing term at Netflix, but it identified no specific franchises, territories, exclusivity terms or producer obligations.

Studios should not book projects against the $500 million figure, and investors should not treat the reported talks as a committed slate.

Xbox’s move toward smaller agreements gives additional partners narrower entry points into the licensing pipeline. That separates what Netflix reportedly sought as one seven-year package from the deal structure now in play.

That matters to rights owners, agents and financiers: the withdrawal ends one negotiation, not Xbox’s licensing activity. Terms, timing and project-level economics remain unresolved.

The smaller structure would also give Microsoft more say over partner and project selection than a single portfolio-wide license.

One practical point for internal development teams: the $500 million figure describes a license, not a fund for any named game-to-film project. The report offers no allocation among productions.

The statement identifies forthcoming Minecraft and Diablo animated series with Netflix, but the report does not say either title was part of the withdrawn license.

Xbox’s new IP unit

Earlier this month, Xbox announced its XP division to deliver transmedia spinoffs, including film, television and theme parks. The unit is led by Kayleen Walters, the current president of Minecraft developer Mojang Studios.

In an email sent to Xbox employees, Sharma wrote: “We wanted someone who has built products for communities at enormous scale, who is deeply technical, and who understands how creators, product, technology, and monetisation come together. Maria brings a rare combination of those experiences.”

The message sets out a product-building agenda: community scale, technical depth, and coordination between creators, product, technology and monetisation.

The reset behind the expansion

The expansion arrives amid an ongoing Xbox reset that has resulted in around 3,200 job losses and the divestment of five studios, including Arkane Lyon. Microsoft extended its consultation period by one month to seek a new buyer for the French studio while it continues development on Marvel’s Blade.

That puts a dedicated internal transmedia operation alongside a smaller owned-studio footprint. For internal teams, XP offers a corporate route for carrying game IP into film, TV and theme parks.

For external studios and licensors, the practical opportunity sits in smaller partnerships rather than the withdrawn Netflix proposal. Neither route reverses the job and studio reductions already under way.

The report does not say whether XP or the licensing program carries additional hiring or production commitments.

The next market signal will come from the scope and pricing of Xbox’s replacement licensing deals, and from whether Microsoft’s one-month Arkane Lyon buyer consultation produces a buyer. Those decisions will show whether the reset yields a durable IP expansion or only selective partnerships.