Business
Netflix targets hollywood studio property seized after $1.1B debt default
Netflix is in talks to acquire Radford Studio Center after lenders led by Goldman Sachs took control of the Los Angeles studio property. The discussions follow a debt default tied to more than $1.1 billion in borrowings and highlight continued interest in production assets despite broader shifts in entertainment real estate.
Netflix is reportedly in talks to acquire the Radford Studio Center in Los Angeles after it fell into foreclosure by a group of lenders, including Goldman Sachs. The negotiations on Star Wars…known as one of Hollywood's most famous production complexes occur as media firms continue to reevaluate their long-term investments in content production facilities.
The possible transaction comes after Hackman Capital Partners defaulted on a debt. Hackman bought the property in Studio City in 2021 for approximately $1.85 billion. The acquisition came at a time when the demand for studio space was rising along the increased production from streaming services.
The debt on the studio lot, valued at more than $1.1 billion, went into default, and lenders took over. Negotiations continue, but neither party has announced an agreement or disclosed financial details.
A Strategic Studio Property Returns to Market
The Radford Studio Center has long been a fixture of Los Angeles' production world. Its sound stages and production facilities have held work for countless movies and TV shows.
The negotiations reported seem to be just another example of Hollywood's property market is adapting to new realities of production economics. Some studio and office assets that traded at all-time highs during the streaming boom period have now come under strains from higher cost of debt and more restrained spending cultures in the entertainment industry.
For Netflix it would diversify an existing network of production facilities producing original content for a worldwide audience.
Streaming Growth Continues Despite Industry Reset
The conversations are occurring in the context of a steady rise in media and entertainment spending globally.
Investment in traditional entertainment and media is set to total US$3.5 trillion globally by 2029, as indicated in PwC the global entertainment & Media outlook 2025-2029. The market is led by the US and the second largest is China. India is one of the fastest growing key markets.
In 2025, Netflix generated revenue of an estimated $45.2 billion, an increase from the year prior and the result of the company broadening its original program offerings and production activities further. It has over 325 million memberships worldwide, and is one of the largest streaming companies globally.
No statements have been made by Netflix or the owners of the property regarding negotiations.
Source: Bloomberg
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