Report: Netflix fails with $500m offer to adapt Xbox gaming IP to film and TV

• Netflix reportedly offered Microsoft $500m for a seven-year Xbox licensing deal to bring gaming IP to film and TV.
• Xbox reportedly countered with an $800m demand, leading Netflix to withdraw its offer.
• Netflix and Xbox continue to work together on animated series based on Diablo and Minecraft.

A potential $500 million deal between Xbox and Netflix to bring the former's gaming IP to film and TV has reportedly fallen through after Microsoft's games division asked for more money.

As reported by entertainment publication Puck, the alleged offer was made by then-Netflix content chief Bela Bajaria for a seven-year licensing deal. Xbox CEO Asha Sharma and her business affairs team was said to have sought $300m more, causing Netflix to withdraw its offer.

The report said Netflix's offer was later taken off the table following Bajaria's departure, with CFO Spence Neumann among those who viewed the proposed deal as too expensive.

Individual deals

Xbox is now reportedly pursuing separate film and television deals with multiple partners rather than a single licensing agreement with Netflix.

Earlier this month, Sharma launched the XP division to expand Xbox franchises through adaptations. Microsoft is already working with Netflix on a Diablo animated series, while a Minecraft animated series is also in development.

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 added that it was looking forward to the release of its Minecraft and Diablo animated series.