Repertory exhibitor American Cinematheque has confirmed that they are negotiating with streamer Netflix, which has offices in Hollywood, to sell the historic Egyptian Theater on Hollywood Boulevard. This acquisition would provide a deep-pocketed owner to keep up the movie palace, which was built in 1922, opening with the Douglas Fairbanks “Robin Hood.” Netflix is spending tens of millions to acquire and refurbish the site.

Departed chief Barbara Smith, who co-founded the Cinematheque in 1981, acquired the earthquake-damaged theatre from the city for $1 in 1997 and raised $12.8 million to restore the magnificent interior and facade. Maintaining the venue, which has two screens, was always an expensive labor of love; the projection booth is equipped with 70 and 35mm as well as digital projectors. The Cinematheque has a ten-year lease on the Aero Theatre in Santa Monica, which has built a healthy West Side fanbase.

The Egyptian marks the first movie theater acquisition for Netflix and...