Netflix Negotiates $400 Million Radford Studio Center Acquisition

Netflix is negotiating a purchase of the 55-acre Radford Studio Center that may close later in 2024 or not at all, with no final agreement signed yet. The streaming giant is pursuing the acquisition to secure a dedicated, full-service Los Angeles site for offices and production. Victor Coleman, CEO of landlord Hudson Pacific, stated on November 5 that Netflix had not closed the Radford transaction. He indicated the closing may occur later in the year or not at all.

Netflix has not signed the final agreement and expects to close the deal later in 2024. The deal was initially agreed upon in April, with due diligence extended through late summer to allow for additional property inspection. A source close to events said the deal is progressing on the agreed upon timetable and with the agreed upon sets of milestone dates. A Los Angeles real-estate insider confirmed Netflix has not signed the agreement, with signing likely later this year.

Facility details and background

The Radford Studio Center comprises 22 stages, 210,000 sq ft of office space and 172,737 sq ft of support space, and was previously owned by ViacomCBS before Hackman Capital Partners took over in 2021. Hackman purchased the Studio City lot in 2021 for $1.85 billion. Planned upgrades were abandoned after production declined in 2023, leaving the facility partially vacant.

Financial and regulatory context

The transaction is valued at more than $400 million, involves a Goldman Sachs-led group that bought Radford after a loan default, and no SEC or L.A. County filings have been made. The Goldman Sachs-led group acquired the 98-year-old studio after Hackman Capital Partners defaulted on a $1.1 billion loan in early 2024. As of the report date, Netflix has not filed any required SEC or Los Angeles County documents for the Radford acquisition.

Strategic relevance for Netflix

The acquisition would give Netflix a full-service Los Angeles site for offices and production, complementing its existing rented Hudson Pacific locations and other studio campuses. This move follows Netflix's loss of the Warner Bros. lot to David Ellison in early 2024. Netflix’s current Los Angeles headquarters consist of rented Hudson Pacific-owned buildings, including the ICON building on Sunset Blvd, with leases running through 2031. The company is one of Hudson Pacific’s largest customers.

The deal is being led by Netflix executives Ted Sarandos and Greg Peters. The potential acquisition would join Netflix's growing portfolio of owned studio facilities across the United States and United Kingdom.

Renovations and new construction would be required if Netflix acquires the studio. Current tenants’ leases would also need to be bought out. The acquisition unfolds amid internal changes, with Peter Rice taking over as Content chief from Bela Bajaria. The company did not respond to a request for comment on the acquisition. Victor Coleman said of the potential closure, "they are not deciding to close it until sometime maybe later in the year, or not."