Hollywood is bracing for changes after Paramount Skydance’s acquisition of Warner Bros. Discovery, announced last week. According to a report in the Los Angeles Times, the deal could lead to adjustments involving some of the studios’ real estate assets.
Paramount’s most notable properties include its historic lots in Burbank and Hollywood, where legendary films such as ‘Titanic’, ‘The Godfather’, ‘Sunset Boulevard’ and ‘Breakfast at Tiffany’s’ were produced.
Entertainment property broker Nicole Mihalka told the L.A. Times that both lots are “in the core 30-mile zone, the inner circle of where Hollywood talent wants to be” and described them as “very prime real estate.”
The L.A. Times noted that in 2024, when Sony and Apollo bid for Paramount, there were plans to sell the Paramount lot. However, there is no indication that Paramount intends to part with its namesake studio.
Currently, both studios are expected to continue operating, with each releasing roughly 15 films per year. Sources close to David Ellison indicated that Paramount’s long-term goal is to consolidate many operations around the Warner Bros. lot in Burbank, reducing redundancies at the Melrose Avenue Paramount lot.
Rather than dismantling the Paramount property, plans reportedly include evolving parts of the lot and leasing space for commercial offices or retail use. The site could also accommodate up to 1.9 million square feet of additional space and be used for film productions, including projects from Paramount and HBO’s combined streaming platforms.
Mihalka added that the Warner Bros. and Paramount lots are “two of the most prime pieces of real estate in the country” and described them as legacy assets with the potential to serve as tourist attractions in addition to functioning as working studios.
Paramount ultimately won the $111 billion bidding war for Warner Bros., paying $31 per share, after Netflix withdrew from the contest on February 26.
