Netflix’s Radford Studio Deal Remains Unresolved

Netflix has not completed its proposed acquisition of Radford Studio Center, a large production campus in Studio City, and the timing of a decision remains unclear. The transaction has been estimated at roughly $330 million to more than $400 million. A source close to the negotiations said the process was moving in line with agreed milestones, while Hudson Pacific Media CEO Victor Coleman said Netflix might decide later in the year whether to proceed.

Netflix received additional time beyond an initial 90-day review period to examine the property. The extension does not necessarily mean the purchase will fall through, but it comes as production activity in Los Angeles remains weak and studios have pursued lower-cost locations with filming incentives.

The potential acquisition is part of Netflix’s reassessment of its Los Angeles space. It leases more than 700,000 square feet in Hudson Pacific buildings, including offices and studio facilities, with leases set to expire in 2031. Coleman said Radford would not replace the company’s existing office footprint. Hudson Pacific is discussing Netflix’s future space needs as it plans how to refinance a 2.2 million-square-foot portfolio of studios and offices. The company has extended a roughly $1.1 billion loan by a year, and its president said it wants clarity on Netflix’s plans before returning to lenders.

Radford has 22 soundstages, along with office and support space, and currently has tenants whose leases would need to be addressed in a sale. Netflix has also developed or is building production facilities in New Mexico, New York, New Jersey and the United Kingdom. A new studio complex, Echelon, is due to open in Los Angeles later this year; a person familiar with the matter said Netflix has shown interest in leasing there.