Netflix has reportedly secured the rights for a Sesame Street movie following a bidding war with Universal Pictures.

A movie based on the classic children's show will officially join the streamer's growing library of content after it picked up the rights for a film from Sesame Workshop, according to The Hollywood Reporter and as first reported on by The InSneider. Live-action Lilo and Stitch and Aladdin production company Rideback, which was founded by Dan Lin before he joined Netflix as its head of film in 2024, will produce the project alongside Sesame Workshop.

Details regarding how beloved characters like Elmo, Big Bird, and Cookie Monster might fit into a feature-length Sesame Street movie have yet to be revealed. It seems a release date is still a ways off, too, as no filmmaker has been attached to the film.

The Hollywood Reporter says the bidding war first began with Netflix, Universal Pictures, and Warner Bros., with Warner Bros. taking an early exit when drama surrounding its impending acquisition started to heat up. Rideback's plan for a Sesame Street movie helped win Sesame Workshop over with Netflix, but it doesn't sound like it was an easy fight.

Before Universal tapped out, it had promised that Everything, Everywhere, All at Once directors Daniel Kwan and Daniel Scheinert were in its corner as producers. The Lego Movie masterminds Phil Lord and Chris Miller were also said to be involved as producers with its side of the deal. The Hollywood Reporter's sources say neither duo was ever attached to direct.

Netflix's involvement in a Sesame Street movie makes even more sense considering the streamer struck a deal to bring new episodes of the show to its platform last year. Meanwhile, this isn't the first time Sesame Workshop has tried to bring a new movie to life in the last 14 years. One project was announced in 2012, and another was mentioned in 2016.

Michael Cripe is a freelance writer with IGN. He's best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).