(Reuters) – Warner Bros Discovery (NASDAQ:) said on Tuesday it would spend at least $8.5 billion to produce films and television shows at a up-to-date studio in Las Vegas, Nevada, if the state grants promised tax incentives.
The media giant is partnering with the University of Nevada, Las Vegas and family real estate firm Birtcher Development to lease and operate a production facility to be known as “Warner Bros. Studios Nevada.”
The facility will be located on a planned 34-acre campus at UNLV’s Harry Reid Research and Technology Park in Las Vegas and will include full-service film and television studios and other facilities.
The up-to-date partnership is contingent on the outcome of a proposal originally introduced by state Sen. Roberta Lange during the 2023 legislative session.
Such financial incentives are attractive to Hollywood studios, which are struggling with rising production costs, exacerbated by consumers switching from cable television and withering advertising revenues.
Warner Bros Discovery earlier this month wrote down the value of its television assets by about $9.1 billion, reflecting a decline in television viewership and advertising revenue.
