ViacomCBS Reaches Deal To Sell Studio City

LA Times photo

ViacomCBS Inc  said on Tuesday it would sell CBS Studio Center, where the iconic sitcom "Seinfeld" was shot, for nearly $1.85 billion, as it looks to raise funds to invest in strategic areas including streaming services.

Reuters reports the company will sell the studio located in the highly competitive Los Angeles studio marketplace to Hackman Capital Partners LLC and Square Mile Capital Management LLC. The more than 1 million square feet property includes 22 stages, a production office and other buildings.

ViacomCBS said in September it was restructuring the operations of Paramount Pictures' movie and television production unit, in a broader shakeup aimed at ramping up content on its cable and streaming services.

According to The LA Times, CBS’ two L.A.-based television stations, KCBS-TV (Channel 2) and KCAL-TV (Channel 9), are housed at the CBS Broadcast Center on the Radford lot, and the local news operation will stay put as part of a long-term lease-back, ViacomCBS said.

CBS, which acquired the property from Republic Pictures in the 1960s, will continue to occupy stages and produce content on the Radford lot. At least three CBS-produced shows, “Big Brother,” “Entertainment Tonight” and “The Talk,” will remain on the site.

The transaction, expected to close this year, comes amid a boom in the studio sector as media companies race to ramp up content production in a streaming-first world.

“We’re honored to have been selected as the new stewards of CBS Studio Center, one of the most celebrated and successful studios in Los Angeles,” Michael Hackman, the founder and chief executive of Hackman Capital Partners, said in a statement.

“The studio has been a hit maker from the days of ‘Gunsmoke,’ ‘Mary Tyler Moore’ and ‘Seinfeld,’ and we’re thrilled to continue our ongoing relationship with ViacomCBS to service its many successful shows currently filmed on the lot,” Hackman added.