Entertainment giant Netflix is advancing its planned acquisition of the storied Radford Studio Center, pushing the landmark Netflix Radford Studio deal toward completion despite swirling industry speculation.
Sources familiar with the negotiations confirmed this weekend that the transaction remains on track. They affirmed that the deal is moving forward under agreed milestones and an established timetable, even as final purchase contracts remain unsigned.
The proposed purchase price exceeds $400 million for the 55-acre campus in Studio City, California. The acquisition would provide Netflix with permanent soundstages and creative infrastructure right in the heart of Los Angeles.
Netflix declined to comment publicly on the current status of closing talks.
Landlord Remarks Trigger Market Questions
Fresh scrutiny surrounded the acquisition following comments made during an investor earnings call on Thursday. Victor Coleman, chief executive of Hudson Pacific Properties, raised doubts about whether the streamer would finalize the purchase.
Netflix currently leases extensive production and office facilities from Hudson Pacific at Sunset Studios, including the ICON, EPIC, and CUE buildings in Hollywood. Coleman told Wall Street analysts that Netflix had not yet closed the transaction, suggesting the company might decide later this year whether to proceed or walk away.
Real estate insiders noted that Netflix received an extension on its due diligence period earlier this autumn. The extra time allowed company executives to inspect the aging facility and assess potential capital improvement costs.
Despite those deliberations, people close to the process insist that the Netflix Radford Studio deal remains an active strategic priority for the streaming leader.
A Legacy Production Campus at a Steep Discount
Radford Studio Center, originally established in 1928 by film pioneer Mack Sennett, ranks among the most famous production facilities in television history. Over decades under CBS ownership, the lot hosted landmark broadcasts, including The Mary Tyler Moore Show, Gilligan's Island, and Seinfeld.
In late 2021, real estate investment firm Hackman Capital Partners acquired the property for $1.85 billion during a streaming-era production boom. However, high interest rates and falling local production occupancy pushed the property into distress, leading lenders led by Goldman Sachs to take over.
Securing the site for approximately $400 million represents a dramatic discount of more than 75% from its peak valuation. Industry analysts view the steep price drop as evidence of broader shifts across Southern California studio real estate.
Many media companies have scaled back local filming budgets, opting to shoot in jurisdictions offering cheaper labor costs and aggressive tax incentives.
Strategic Transition From Tenant to Studio Owner
Owning the sprawling Studio City complex would mark a critical milestone in Netflix’s corporate evolution. For over a decade, the entertainment powerhouse operated primarily as a tenant across leased soundstages in Southern California.
Controlling an owned studio lot allows the company to reduce long-term leasing overhead while securing dedicated production hubs for major feature films and television series.
Company leadership under co-CEOs Ted Sarandos and Greg Peters has sought iconic physical real estate to anchor its global content operations. As negotiations continue into the winter, the completion of the Netflix Radford Studio deal will signal whether streaming companies can stabilize historic Hollywood infrastructure during an era of cost discipline.
