Warner Bros To Pay $8.5 Billion for Nevada Studio … Under One Condition

Warner Bros. Discovery announced plans Tuesday to purchase and operate an $8.5 billion film studio in Nevada, contingent on the successful passing of a state tax credit.

The global media company said the commitment is part of a long-term collaboration with the University of Nevada, Las Vegas and Birtcher Development.

The 34-acre facility will be located at UNLV Harry Reid Research & Technology Park in Southeastern Las Vegas. It will feature full-service film and TV studios, and will be named “Warner Bros. Studio Nevada,” WBD said.

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Part of the planned partnership will include the Nevada Media and Technology Lab, a teaching facility that will provide opportunities for UNLV students to learn and work in the industry.

Warner Bros.’ commitment of roughly $500 million a year depends on the outcome of a proposal, initially introduced by Nevada Senator Roberta Lange during the 2023 legislative session.

Lange unveiled the massive proposed expansion to the film tax credit program, with a $190 million proposed price tag. Under her new proposal, that number would go down to to $95 million annually over 17 years.

“Warner Bros. Studios Nevada represents a great opportunity to further expand our facilities to accommodate these productions,” Warner Bros. Studios chief operating officer Simon Robinson said in a statement. “We 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.”

It’s common for states and cities to offer similar subsidies, which are attractive to Hollywood studios as they struggle to maintain productivity amidst growing production costs.

In May, the Dallas City Council unanimously approved a request for designation as a “media production and development zone,” which would let the city offer sales and tax exemptions for projects involving media production .

The National Conference of State Legislatures has reported that at least 18 states have enacted measures to implement or expand film tax incentives since 2021.