According to reports, Netflix proposed a $500 million deal to Microsoft for a seven-year licensing agreement involving Xbox intellectual property

Image credit: Xbox/Microsoft

Reports indicate that Netflix proposed a $500 million agreement with Microsoft over seven years to use Xbox intellectual properties for film and TV. This offer was purportedly rejected by Microsoft, who instead sought $800 million, according to Puck. This negotiation involved Asha Sharma and other executives at Xbox.

The deal was initially presented by Bela Bajaria, Netflix's ex-chief content officer, who recently left the company. She has been succeeded by Peter Rice, formerly of Disney and Fox. Following Bajaria's departure, the deal talks appear to have been halted, with Xbox now reportedly considering smaller-scale collaborations with different partners.

Netflix did not provide remarks on the supposed proposal. Xbox, however, released a statement emphasizing their fruitful relationship with Netflix, mentioning upcoming animated series based on Minecraft and Diablo among other projects.

Significantly, Xbox introduced a new division aimed at expanding its brand into movies, TV, and other media, led by Kayleen Walters from Mojang Studios. This division, called XP, reflects the company's strategy to leverage its franchises beyond gaming.

Asha Sharma, in a message to Xbox staff, highlighted the importance of leadership in such initiatives, citing the appointment of Maria, who brings extensive expertise in community building and technology, as part of this expansion.

This growth strategy occurs amidst a broader restructuring at Xbox, involving considerable workforce reductions and the divestment of several studios like Arkane Lyon. Microsoft is actively exploring new ownership options for the French studio while continuing with other projects, including the adaptation of Marvel's Blade.