Netflix's $500m Xbox licensing bid reportedly fell through

By Priya Raman

Netflix reportedly offered Microsoft $500 million for a seven-year license to adapt Xbox gaming intellectual property (IP) for film and television, but withdrew the proposal after Xbox countered at $800 million, according to Puck.

Puck's October 26, 2026 report said then-Netflix content chief Bela Bajaria made the offer. Xbox CEO Asha Sharma and her business affairs team sought $300 million more, producing the reported $800 million counteroffer and prompting Netflix to pull back.

Netflix CFO Spence Neumann was among the executives who considered the proposed package too expensive, Puck reported. The outlet also linked the offer's removal to Bajaria's departure, placing personnel change and price resistance around the same decision.

The $500 million bid sat $300 million, or 60%, below the $800 million ask. Neither side reached a seven-year agreement, and no final terms were announced after the reported withdrawal.

Why did the $500 million bid collapse?

The reported chronology was:

• Bajaria proposed a seven-year licensing agreement for Xbox gaming IP across film and television.
• Xbox asked for $300 million more than Netflix's $500 million offer, taking its counter to $800 million.
• Netflix withdrew; Puck linked the offer's removal to Bajaria's departure from the company.
• Xbox then pursued separate film and television agreements with multiple partners rather than one package license.

The report does not specify the property list, the split between film and television rights, or whether the proposed $500 million covered all eligible Xbox IP or a selected subset. That leaves the headline valuation without enough detail to benchmark against other adaptation agreements.

What does this change for studios and teams?

For studios and production teams, the practical change is contract structure: instead of one seven-year package with Netflix, Xbox is pursuing separate film and television agreements with multiple partners. Rights, project scope and economics would be settled in each negotiation rather than through a single arrangement. The report did not name partners or disclose a replacement package value.

The shift does not end Netflix's existing Xbox relationship. Microsoft and Netflix continue to work together on a Diablo animated series, while a Minecraft animated series is also in development. Those projects remain separate from the abandoned package proposal, so the collapse of the broader licensing talks does not itself cancel either animation.

Earlier in October 2026, Sharma launched the XP division to expand Xbox franchises through adaptations. The new unit gives Xbox a dedicated organizational vehicle for that strategy as it moves toward partner-by-partner deals. It does not remove the need to find counterparties, define each adaptation's rights or agree commercial terms; it places the expansion effort under a named division.

In a statement to Puck, Xbox said it had received “record-breaking interest” in its intellectual property and described Netflix as a “valued partner.” The company also said it was looking forward to the release of its Minecraft and Diablo animated series. Its statement did not address the reported offer, the valuation or the abandoned package structure.

For Xbox, the next concrete signal is whether it announces a partner from the separate film and television talks. A release schedule for either Netflix animated series would provide the other measurable signal. Until then, Netflix's $500 million proposal remains withdrawn and the seven-year package has no announced replacement.