(Bloomberg) -- Warner Bros Discovery Inc. agreed to spend at least US$8.5 billion on movie and TV production at a new entertainment center in Las Vegas if Nevada approves a proposed subsidy next year.
The company is partnering with the University of Nevada at Las Vegas and Birtcher Development to lease and operate the facility, according to a statement Tuesday. Warner Bros. Nevada Studios, as the project is called, would be located on a 34-acre (13.8-hectare) parcel at the university’s Harry Reid Research & Technology Park. Jones Lang LaSalle Inc. brokered the deal.
Warner Bros.’ commitment of roughly $500 million a year is contingent on the state passing legislation, initially suggested last year and expected to be reintroduced in February.
States and countries routinely offer subsidies to lure Hollywood productions. The proposed Las Vegas deal occurs as Warner Bros. and others in Hollywood reduce budgets and struggle to recover from strikes by writers and actors that shut down production for months last year. This month Warner Bros. announced a $9.1 billion writedown on its cable networks, including CNN and TNT.
“We are fully committed and excited about the potential of a long-term partnership and presence in Nevada and are confident it will be a win-win for the state of Nevada, the Las Vegas community and WBD as we look ahead to our next 100 years of exceptional storytelling,” Simon Robinson, chief operating officer of Warner Bros. Studios, said in the statement.
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