Netflix Proceeds With $400 Million Radford Studio Acquisition
Despite landlord skepticism, Netflix moves forward with plans to acquire the historic Radford facility.
1Strategic Studio Acquisition
Netflix is moving forward with its long-rumored acquisition of the 55-acre Radford Studio Center in Studio City. Despite recent public comments from their current landlord, Hudson Pacific, suggesting uncertainty, sources confirm the deal remains on the agreed-upon timetable. This purchase is valued at over $400 million for the historic facility.
2Landlord Public Skepticism
Hudson Pacific CEO Victor Coleman recently stated during an earnings call that Netflix had not yet closed the transaction. He further remarked that the streamer might not finalize the deal until later this year, or perhaps not at all. These comments created significant speculation regarding the status of the major real estate deal.
3Operational Real Estate Needs
Netflix currently operates out of a collection of rented structures owned by Hudson Pacific on Sunset Boulevard. Executives have long identified the need for a full-service, company-owned campus in Los Angeles to consolidate operations. The current leased office space is considered a hodgepodge that the company has effectively outgrown in recent years.
4Facility Specifications and History
Radford Studio Center is a 98-year-old venue that formerly served as a CBS hub. The site features 22 soundstages, 210,000 square feet of office space, and 172,737 square feet of support space. Historically, it hosted iconic productions such as Seinfeld, Gunsmoke, and The Mary Tyler Moore Show, making it a significant Hollywood landmark.
5Financial Context of Ownership
The facility was previously acquired by Hackman Capital Partners in 2021 for $1.85 billion from ViacomCBS. However, Hackman defaulted on a $1.1 billion loan earlier this year, leading a Goldman Sachs-led group to take control. This transition paved the way for Netflix to enter into direct negotiations for the massive property.
6Global Infrastructure Expansion
Beyond the Radford deal, Netflix is transitioning from a renter to an owner globally. The company has established campuses in New Mexico and Brooklyn, and is currently constructing a 300-acre studio in New Jersey. These investments, alongside their UK hub at Longcross Studios, demonstrate a clear strategy to control their own production infrastructure.
7Market and Internal Challenges
The acquisition process occurs amidst internal shifts, including leadership changes and recent layoffs. Netflix stock has faced pressure, recently dipping to $63.40 per share. Despite these financial headwinds and declining engagement metrics, the company remains committed to securing a sprawling studio lot to cement its long-term dominance in the entertainment industry.
8Future Industry Impact
Once the deal closes, Netflix will need to address existing tenant leases at the Radford site. While the acquisition will not immediately solve the current surplus of soundstage space in Hollywood, it signals a major commitment to local production. This move provides a positive indicator for the industry's long-term employment and infrastructure outlook.
Original article: Deadline — Netflix Proceeds With $400 Million Radford Studio Acquisition