Warner Bros Ties US$8.5B Vegas Plan to Tax Deal

Warner Bros Discovery Inc has committed to investing at least US$8.5 billion (RM37.19 billion) in film and TV production at a new entertainment center in Las Vegas, contingent upon Nevada approving a proposed subsidy next year.

According to a statement on Tuesday, the company is joining forces with the University of Nevada, Las Vegas, and Birtcher Development to hire out and accomplish the facility. The project, named Warner Bros Nevada Studios, will be located on a 34-acre (13.8-hectare) site within the university’s Harry Reid Research and Technology Park. The deal was arranged by Jones Lang LaSalle Inc.

Warner Bros' annual dedication of roughly around US$500 million is reliant on the state passing codification, which was first suggested last year and is anticipated to be reintroduced in February.

States and countries frequently provide subsidies to attract Hollywood productions. The proposed Las Vegas deal comes at a time when Warner Bros and other Hollywood studios are cutting budgets and grappling with the impact of last year’s prolonged strikes by writers and actors. This month, Warner Bros disclosed a US$9.1 billion write-down 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 Warner Bros, as we look ahead to our next 100 years of exceptional storytelling,” Simon Robinson, the chief operating officer of Warner Bros Studios, said in the statement.