Netflix in Talks to Acquire Radford Studio Center at 66% Below 2021 Price After Owner Defaults on $1.1B Loan

Netflix is in advanced discussions to acquire the Radford Studio Center, a historic television and film production lot in Studio City, California, according to a Bloomberg report published on Tuesday.

The streamer is reportedly seeking to purchase the property for a fraction of its 2021 valuation, despite its storied past. Iconic shows such as ‘Gilligan’s Island’ and ‘Seinfeld’ were filmed at the site, which was previously known as the CBS Studio Center.

Negotiations are ongoing, and the final purchase price has not yet been finalized. However, sources cited by Bloomberg indicate the deal is expected to close at approximately one-third of the lot’s $1.85 billion sale price in 2021.

Radford Studio Center’s Financial Turmoil and Ownership Shifts

The potential acquisition comes months after Hackman Capital Partners (HCP), the current owner, allegedly defaulted on a $1.1 billion mortgage tied to the property. In April 2024, HCP informed investors it would halt restructuring efforts following failed negotiations with lenders, effectively ceding control of the studio.

“We’ve made the difficult decision to inform the lenders that we must pause further efforts to complete the restructuring. While disappointing, we do not see a realistic alternative.”
— HCP Studio Fund letter to investors

Hackman Capital Partners purchased Radford Studio Center from ViacomCBS in 2021 for $1.85 billion. The firm had planned to invest an additional $1 billion into renovations and upgrades to modernize the aging facility.

However, the studio faced significant setbacks in 2024, including a fatal workplace accident. In June 2024, a worker identified as J.C. “Spike” Osorio died after falling through deteriorating wooden structures on the property. As a result, the California Division of Occupational Safety and Health (Cal/OSHA) imposed a $45,000 penalty on Radford Studio Center for safety violations.

Netflix’s Strategic Move After Warner Bros. Discovery Bid Falls Through

Netflix’s interest in Radford Studio Center follows its failed attempt to acquire Warner Bros. Discovery (WBD). In December 2023, Netflix submitted a $82.7 billion bid for WBD, emerging as the leading contender in a competitive auction. However, by the end of February 2024, the streamer declined to match a $31 per share offer from the Paramount Skydance consortium, effectively ending the bidding process.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
— Ted Sarandos and Greg Peters, Co-CEOs of Netflix

In response, David Zaslav, CEO of Warner Bros. Discovery, stated:

“I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction.”
— David Zaslav, CEO of Warner Bros. Discovery

Netflix’s pursuit of Radford Studio Center signals its continued expansion into physical production infrastructure, following its earlier investments in soundstages and studio facilities across the United States.