Warner Bros. Drops $8.5B Nevada Plans as Sony and Manhattan Beach Continue the Push

Warner Bros. Discovery (WBD) has given up on its plans to construct a $8.5 billion movie studio in Las Vegas. The backers of a film tax credit bill have now allied themselves with a smaller studio instead.  

WBD Planned an $8.5B Enterprise

In August 2024, WBD announced its plan to spend $8.5 billion to lease and operate a movie studio in Nevada. This measure, however, depended on depend on the passing of a film tax credit incentive bill that previously failed to make it into law.

SB 496 was shot down in June 2023, failing to diversify the economy in Southern Nevada by committing more resources to the development of the region’s workforce. In line with previous forecasts, the measure was reintroduced yesterday under SB 220.

Dubbed the Nevada Film Infrastructure, Workforce Development, Education and Economic Diversification Act, the latest bill would provide $100 million in annual transferable film tax credits for 15 years.

Although WBD believed that it could unlock significant value in Nevada, the company dropped its initial plans. The new measure therefore lists Manhattan Beach Studios as the beneficiary.

The New Bill Lists Manhattan Beach Studios as the Beneficiary

Senator Roberta Lange commented on the matter, saying that Manhattan Beach Studios is fully committed to expanding Nevada’s movie industry. In an interview with Casino.org, Lange also commented on Warner Bros., saying that the company “wanted to take a pause and decide where they wanted to be.”

Warner Bros., for context, had vowed to invest $900 million in the construction of a studio and $8.5 billion in production spending over 17 years.

Bircher Development, which would have constructed the studio, pulled out of the deal with WBD earlier this year. At that point, the latter company still remained committed to constructing the new studio even if that meant contracting a different developer. Bircher, however, now plans to build the new facility with Manhattan Beach Studios, should SB 220 secure approval.

Sony Also Has Plans for Nevada

Warner Bros. and Manhattan Beach Studios are not the only parties interested in Las Vegas’ movie industry. Sony, another entertainment giant, is likewise looking to benefit from tax credits and develop a $1.8 billion studio in Nevada. The property is backed by the Clark County Zoning Commission and would be constructed in partnership with Howard Hughes Corporation, which owns the parcel.

Under Assembly Bill 238, Sony would be able to receive up to $105 million in tax credits a year for 15 years. In return, the company has committed to invest at least $400 million in the state.

Under the terms of AB 238, Sony would have to shoo a least half of every film using the Nevada studio. The agreement also states that Sony would have a maximum of 18 months to complete each film.