Relief In Sight For NFLX? After Passing On WBD, Netflix Reportedly Wants Hollywood Lot Where 'Seinfeld' Was Shot At Bargain Price

• The final price of the studio has not yet been determined and could be around $600 million, according to Bloomberg.
• Radford’s current owner, Hackman Capital Partners, defaulted on a loan and turned the property over to lenders led by Goldman Sachs.
• Netflix shares gained in extended trading after dropping for three straight sessions following its earnings.

After dropping out of the race to acquire Warner Bros. Discovery, Netflix is now reportedly eyeing one of Los Angeles' oldest movie studios.

The streaming giant is said to be in talks to buy Radford Studio Center, reportedly for a fraction of its $1.85 billion 2021 sale price, after lenders, including Goldman Sachs, repossessed the property, according to a source-based report in Bloomberg.

The final price of the asset has not yet been determined and could be around $600 million, according to the report. 

Netflix shares edged up 0.4% in after-hours trading on Tuesday, after sliding sharply over the previous three sessions on a muted forecast and the departure of co-founder Reed Hastings. Amid the weakness, analysts have largely recommended investors to buy the dip. 

Netflix Wants The ‘Hit Factory’

Founded in 1928 by silent film pioneer Mack Sennett, Radford Studio is one of the oldest working studio lots in Los Angeles. Some of the most famous shows in TV history – such as “Seinfeld,” “Will & Grace,” and “That ‘70s Show” were shot here, earning it the reputation as a “hit factory” for sitcoms.

Radford’s current owner, Hackman Capital Partners, defaulted on a $1.1 billion loan and turned the property over to lenders led by Goldman Sachs after failing to reach a refinancing deal last year.

Netflix, which has historically leased rather than owned real estate, has stepped up investing in studio lots. It is currently developing a $1 billion production center in Fort Monmouth, New Jersey.

To be sure, one of the main reasons Netflix approached Warner Bros. to acquire it was the latter’s studio assets. Netflix effectively walked away from the WBD deal in February to rival bidder Paramount Skydance, a move that many of its investors welcomed.

Netflix reported $12.3 billion in cash and equivalents in its most recent quarter, after being paid a $2.8 billion breakup fee by Paramount.

Retail’s View On NFLX

On Stocktwits, the retail sentiment for NFLX has been climbing since last week and was ‘extremely bullish’ late Tuesday. “$NFLX 3 day is over..expect slow upward movement from tomorrow.. option flow is also looking bullish,” said a user. 

Netflix shares have shed over 14% over the last three days following the latest earnings report, taking their year-to-date losses to 1.3%.

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