Netflix, the streaming giant run by co-CEOs Ted Sarandos and Greg Peters, is reportedly in talks to acquire the historic Radford Studio Center in Los Angeles, according to a report by Bloomberg on Tuesday.
The potential acquisition marks a significant shift for Netflix, which has been the anchor tenant at Sunset Studios, making the ICON building its Los Angeles headquarters and occupying the EPIC and CUE buildings as part of the complex on Sunset Boulevard.
Current Lease Situation
| Current Headquarters | Sunset Studios (ICON, EPIC, CUE buildings) |
| Lease Expiration | 2031 |
| Annual Rent | $27 million (base annualized) |
| Space Occupied | 722,305 square feet |
| Landlord | Hudson Pacific Properties |
Netflix has a lease on those buildings through 2031 with the owner, Hudson Pacific Properties, which receives $27 million in base annualized rent from Netflix.
As of early March, Hudson Pacific CEO Victor Coleman described at an investor conference that “our conversations with them are fluid” regarding future leases. Netflix is the No. 2 tenant for Hudson Pacific among its office tenants, occupying 722,305 square feet of space, just behind Google.
The Radford Studio Center
| Previous Owner | ViacomCBS (sold in 2021) |
| Sale Price (2021) | $1.85 billion |
| Buyers (2021) | Hackman Capital Partners, Square Mile Capital Management |
| Current Status | Goldman Sachs took over after Hackman defaulted on mortgage |
The historic studio was in the hands of ViacomCBS until 2021 when it was sold to Hackman Capital Partners and Square Mile Capital Management for $1.85 billion.
Investment bank Goldman Sachs had taken over the Radford lot after Hackman defaulted on its mortgage, Bloomberg reported in January.
Netflix’s Soundstage Expansion
Netflix has made an effort to build its soundstage bases over the years, outside of its L.A. office:
| Albuquerque, New Mexico | Formerly named ABQ Studios |
| Fort Monmouth, New Jersey | $1 billion East coast base (under development) |
| Mexico City | Headquarters unveiled this year |
| Buenos Aires, Argentina | Office opened this year |
| Poland | Central European hub expanded |
Why This Matters
- Financial Cushion: Netflix recently received a $2.8 billion breakup fee in connection with its abandoned pursuit of Warner Bros., providing significant capital for potential acquisitions.
- Strategic Shift: An exit from Sunset Studios would be a significant loss for Hudson Pacific Properties.
- Global Footprint: Netflix continues to expand its global office and studio space portfolio to serve its 325 million subscribers.
Industry Context
The Michael Hackman-led firm had bet that studio infrastructure would be a hot commodity as majors bulked up on spending for streaming shows. However, after the 2023 dual labor strikes, content spend pulled back and stage occupancy started waning.
Hackman also operates the historic Raleigh Studios in Los Angeles, which has Netflix as the anchor tenant through 2031 as well.
Official Responses
Netflix declined to comment on the story. A Hudson Pacific rep did not reply for comment.
