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Streaming giant planning to scoop up massive Hollywood studio lot at a deep discount
Netflix is expected to bid about $400 million for Radford Studio Center, a historic 55-acre Los Angeles lot where shows including “Seinfeld” were filmed. The purchase would expand Netflix’s production capacity in the area as local film and television output is at a record low.
Lenders led by Goldman Sachs are seeking about $1.3 billion, roughly the debt owed, but the expected sale price is far below the $1.85 billion Hackman Capital Partners paid in 2021. Lenders took the property back about nine months ago and are arranging its sale at a 24 November auction; the structure may also avoid a city tax estimated at about $22 million. Netflix already leases space at Sunset Studios and also films at Raleigh Studios.
In short
- Netflix is expected to bid $400 million for Radford Studio Center.
- The 55-acre lot was bought for $1.85 billion in 2021.
- The sale could expand Netflix’s Los Angeles production capacity.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A purchase at a steep discount could give Netflix more production space in Los Angeles when local output is unusually low, potentially supporting future productions and jobs. If the auction attracts bids and the sale reflects the property’s current market value, accepting less than the debt owed may be a practical way for lenders to recover part of their funds and return the lot to active use.
The case against
A sale far below both the debt owed and the 2021 purchase price could leave lenders with substantial losses and prompt questions about whether the auction will secure the best available return. The deal may also benefit Netflix while avoiding a reported city tax, raising concerns that public revenue and local interests could be set aside as a valuable historic site changes hands.
Explained simply
Radford Studio Center is a large film and television production site in Los Angeles, with sound stages, offices and other facilities used to make programmes such as Seinfeld. Studio lots provide the space and equipment productions need, and owning one can give a company more control over when and where it films.
Netflix is a streaming and production company that makes films and series as well as showing programmes made by others. It already uses studios in Los Angeles, while Radford has had different owners; its previous owner, Hackman Capital Partners, bought the site in 2021. The site’s ownership matters to the local industry because it is a major production facility at a time when film and television output in the area is unusually low.