Netflix Inc. is in talks to buy the historic Radford Studio Center for a fraction of its 2021 sale price, a move that would give the streaming giant a permanent production foothold in Los Angeles and signal a major shift in its real estate strategy. The company is negotiating with a group of lenders led by Goldman Sachs Group Inc. to acquire the 55-acre lot for between $330 million and $400 million, according to people with knowledge of the matter.
"This is a great opportunity for Netflix, at the right price," said a source close to the situation, who was not authorized to speak publicly. The potential acquisition comes as Netflix's 10-year lease on Sunset Bronson Studios is set to expire later this year, creating a pressing need for a long-term real estate solution for its vast production operations in the city.
The potential acquisition price stands in stark contrast to the $1.85 billion that Hackman Capital Partners and Square Mile Capital Management paid for the studio in 2021. The firms later defaulted on a $1.1 billion mortgage, leading lenders to repossess the property in January. The steep discount reflects a broader downturn in the value of Los Angeles studio real estate, which has been hit by rising interest rates and a production slowdown following the 2023 Hollywood strikes.
For Netflix, the purchase would represent a strategic shift from leasing to owning its production infrastructure, consolidating its vast Los Angeles operations into a single, historic location. The move would also give the company control over a storied lot that has been home to iconic television shows such as "Gunsmoke," "Gilligan's Island," and "Seinfeld." The acquisition would follow Netflix's recent $2.8 billion breakup fee from its abandoned pursuit of Warner Bros. and its ongoing development of a $1 billion production hub in New Jersey, underscoring its commitment to building a global production footprint.
This article is for informational purposes only and does not constitute investment advice.
