Warner Bros. and Sony Drop Rivalry and Join Forces Behind Las Vegas Studio

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Warner Bros. Discovery and Sony Pictures have put aside their rivalry in Nevada and are now collaborating on a fresh studio venture located in the outskirts of Las Vegas.

In the cinematic world last year, I found myself in a fascinating predicament where two production companies were each championing competing projects that needed financial assistance from state tax incentives to take flight.

However, in the past few weeks, Warner Bros. has withdrawn its backing for a facility located at a UNLV business park in southwest Las Vegas. On Wednesday, they unveiled their decision to collaborate with Sony instead, on a $400 million studio project situated in Summerlin.

Assemblywoman Sandra Jauregui, who is championing the Summerlin project within the Nevada Legislature, applauded the initiative in a statement: “We are recognized globally as the entertainment hub, and there’s no more compelling demonstration of this than this collaboration between two international powerhouses in film and television production.

As a cinephile putting my thoughts into words, I’m sharing some insights about the Summerlin venture. This project needs a minimum of $80 million annually in Nevada tax incentives, but here’s the twist – these credits are yet to receive approval from both the Legislature and the governor.

In 2023, lawmakers declined to pass a bill that proposed funding two studios each year with a budget of $190 million. Since this decision, it’s become evident that there is interest in no more than one studio project.

Last year, Warner Bros. teamed up with Birtcher Development on a project involving approximately 12-14 soundstages, which is located at the UNLV Harry Reid Research and Technology Park. During this collaboration, the studio made a significant promise to invest at least $8.5 billion over a period of 17 years in this facility.

Sony collaborated on a scaled-down venture, joining forces with Howard Hughes Holdings, creators of the Summerlin master-planned neighborhood. This particular project was intended to house ten soundstages, but it was also slated for a broader commercial development encompassing accommodations like hotels and shopping areas.

In preparation for presenting their arguments to legislators during this year’s session, both parties conducted separate economic analyses as evidence. Sony’s supporters highlighted the company’s financially stable position, clearly distinguishing it from Warner Bros., while Warner Bros. emphasized its vast size, drawing attention to its scale in comparison to Sony which is relatively smaller.

Recently this month, Governor Joe Lombardo, who represents the Republican party, voiced doubts regarding financial support for the movie industry during an interview with KTNV.

In my opinion, as a movie-goer reviewing this situation, I can’t help but question the wisdom of such a move. It seems doubtful that this would be beneficial for the voters and Nevada as a whole. Additionally, one must tread cautiously when attempting to persuade the public that this is an effective business strategy, especially given the presence of these colossal corporations and the apparent need within them.

Previously, the state had pledged $1.1 billion in financial incentives towards constructing stadiums to attract both the Oakland A’s and Oakland Raiders. This has caused certain politicians to express caution about making another significant investment in the entertainment industry, specifically Hollywood.

By ending the Birtcher project, Warner Bros. will need to adjust their aspirations within the state, as they had initially aimed to receive approximately $100 million annually in production subsidies at that site.

Jauregui is seeking an annual sum of $80 million for the Summerlin studio, along with an additional $25 million to motivate filming at other sites. Including Warner Bros. in the deal might slightly increase this amount, but they would need to divide that budget with Sony if they join.

Currently, Nevada provides production incentives amounting to $10 million annually; however, this amount falls short compared to states like California, New Mexico, and others that have more significantly subsidized production environments.

In a statement, Simon Robinson, WBD’s COO, expressed his continued conviction that Las Vegas might function as a third vital “base” for the company, following Burbank and London.

Tony Vinciquerra, head of Sony Pictures Entertainment, expressed his excitement about the partnership, noting that this distinctive and strong alliance will serve as a base for a prosperous film and TV production sector in Nevada.

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2025-02-26 23:46