Once it was confirmed that Paramount Skydance emerged victorious in the Warner Bros. Discovery bidding war, questions soon arose about the fate of their historic studio lots.
Yet, in a new Puck News interview published Friday, Gerry Cardinale, the RedBird Capital managing partner and chief architect of Paramount Skydance’s $111 billion WBD deal, assured concerned parties that the current plan is to “optimize the combined real estate footprint and corporate overhead,” clarifying there was no plan to sell off the studio lots located in Hollywood and Burbank.
He added: “We’re going to develop them more efficiently.”
The outlet also noted that “theme park–style experiential entertainment on one of the lots,” similar to Universal Studios, was being considered — though, Paramount declined to comment on the report.
The new report further fuels claims made earlier in the week by the Los Angeles Times, which shared that Paramount plans to keep both studios operating with each releasing around 15 films per year. But, the storied paper also reported that those close to Paramount Skydance CEO David Ellison have said the eventual goal is to consolidate most of the studio operations around the Warner Bros. lot.
Per the L.A. Times, the current plan is to lease out space for film productions, including those tied to their planned combined streaming company. Additionally, it’s said Ellison has considered developing parts of Paramount’s 65-acres for retail or commercial office use. Representatives for Paramount did not immediately respond to TheWrap’s request for comment.
Given the Paramount lot’s long ties to Hollywood, it isn’t surprising that the studio is reportedly not quite ready to part with its namesake property.
This dilemma was not necessarily a problem for former frontrunner Netflix, who declined to match Paramount’s $31 per share offer at the end of February.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” co-CEOs Ted Sarandos and Greg Peters said of the streamer’s previously successful $83 million offer. “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.”
At the time, WBD CEO David Zaslav said in a statement, “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.”
The post Paramount Mulls Studio Lot Changes After Warner Bros. Merger | Report appeared first on TheWrap.
