Warner Bros. Discovery Inc. announced plans to invest at least $8.5 billion in a new entertainment facility in Las Vegas, Nevada, pending the approval of state tax incentives.
The proposed project, named Warner Bros. Studios Nevada, would be developed in partnership with the University of Nevada, Las Vegas (UNLV) and Birtcher Development.
Warner Bros. Discovery Plans $8.5 Billion Las Vegas Studio
The new studio is slated to be built on a 34-acre site within UNLV's Harry Reid Research & Technology Park. The facility will include state-of-the-art film and television studios, aiming to enhance Nevada's attractiveness as a production hub. The project is part of Warner Bros. Discovery's broader strategy to bolster its content production capabilities.
According to Reuters, the investment hinges on the passage of legislation proposed by State Senator Roberta Lange. The bill, initially aiming to provide $190 million in annual tax credits, has been revised to offer $95 million per year over 17 years. The revised legislation, expected to be reintroduced in February, will require private companies to meet certain infrastructure benchmarks before receiving tax credits.
Warner Bros. Discovery's commitment includes allocating $500 million annually to the new studio, contingent on the state's approval of the tax incentives. The company's investment is part of a broader trend where states and countries offer subsidies to attract major Hollywood studios. This move comes as Warner Bros. Discovery faces financial pressures, including a recent $9.1 billion writedown on its cable networks due to declining TV viewership and ad revenue.
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Warner Bros. Studios Chief Expresses Enthusiasm
Simon Robinson, chief operating officer of Warner Bros. Studios, emphasized the company's enthusiasm for the project. "We're committed to both the bill and the state. We're going to be around a long time. Hopefully, they can make this happen," Robinson stated.
The proposal adds complexity to Nevada's upcoming 2025 legislative session, which already includes competing proposals. Notably, Assembly Majority Leader Sandra Jauregui has introduced a separate initiative for a studio and workforce training program in Las Vegas, involving Sony Pictures and Howard Hughes Corp. This initiative follows a failed attempt to expand the state's film tax credit program in 2023.
The proposed Warner Bros. Studios Nevada investment, while significant, faces limitations under Nevada's current tax credit rules, which cap annual credits at $10 million and $6 million per production. The revised bill stipulates that tax credits will be granted only after the establishment of necessary infrastructure and will undergo audits.
If approved, the project will feature not only a major studio complex but also a "Nevada Media and Technology Lab" for educational and vocational training. This center will offer vocational training, internships, and research opportunities for students in Nevada, AP News reported.
