Michael Hackman, the 69-year-old Hollywood mogul behind a multi-billion-pound global studio empire, is confronting a potentially devastating financial crisis. The perfect storm of an industry-wide production slowdown and a fierce corporate battle between streaming titans Netflix and Paramount has placed his life's work in severe jeopardy.
The Empire Built on Soundstages
Hackman founded Hackman Capital Partners in 1986, transitioning from industrial and real estate development into studio ownership in 2014. His firm has invested billions into acquiring and developing more than 60 soundstages across key production hubs in California, New York, Toronto, the UK, and Ireland. In Los Angeles alone, he owns six major studio properties that have been home to iconic shows like Seinfeld, Parks and Recreation, and Big Brother.
The initial boom, fuelled fifteen years ago by record content commissions from Netflix, Disney, and Amazon, led to a frantic race to build studio space. Between 2017 and 2019, millions of square feet were constructed. The pandemic provided a second wind, with viewers consuming content at unprecedented rates. As Hackman told The Wall Street Journal, production companies were effectively "shooting money out of a cannon."
The Perfect Storm: Slowdown and Corporate Clash
That boom has now decisively bust. The entertainment industry is in a pronounced slowdown, characterised by:
- Fewer productions and empty soundstages.
- Lower rental income for studio landlords.
- Rising debt costs on loans taken when interest rates were low.
- A shift in studio focus from subscriber growth to profitability.
Data from ProdProp shows that US film and TV projects with budgets over $40 million saw a nearly 30% drop in shoots in 2024 versus 2022. This situation has been dramatically exacerbated by a hostile corporate takeover battle that threatens to reshape Hollywood's landscape.
Earlier this month, Netflix made an $82.7 billion move to acquire Warner Bros. Discovery’s studios, its HBO and HBO Max streaming businesses, and its vast content library. Just days later, Paramount Skydance launched an aggressive $108 billion all-cash counteroffer for all of Warner Bros.’ assets, including CNN, TBS, and TNT. Warner's board is currently reviewing both offers.
Consolidation Crisis and a Plea for Help
For Hackman, this corporate clash represents an existential threat. Regardless of whether Netflix or Paramount prevails, industry consolidation is expected to accelerate. A merged behemoth, controlling Warner's own extensive studio facilities and content library, would have far less need to rent space from independent operators like Hackman Capital Partners.
"The whole ecosystem is really under distress," Hackman stated bluntly. He is now actively restructuring debt, scaling back expansion—including downsizing a planned campus near Dublin—and negotiating with lenders like Goldman Sachs over a $1.1 billion loan tied to the Radford Studio Center.
In response, Hackman has appealed to President Donald Trump’s administration for support, seeking government incentives such as tariffs and tax breaks to help US studios compete with cheaper production centres in Europe, Canada, and Australia. "A lot is going to depend on support from the government," he argued.
The political dimension is notable. Affinity Partners, a private equity firm led by Trump’s son-in-law Jared Kushner, is a backer of Paramount's $108 billion bid. President Trump also revealed he met with Netflix co-CEO Ted Sarandos before its bid was announced, discussing antitrust concerns around the potential merger.
Despite the immense pressure, Hackman insists his company remains financially robust, with nearly $500 million in cash and half its portfolio free of debt. He acknowledges that if the streaming boom truly fades, studio landlords may have to creatively repurpose their soundstages for live events or attractions, akin to Warner's Harry Potter studio tour in London.
"The industry is evolving," Hackman concluded. "We can't stay passive." His current struggle epitomises the high-stakes turmoil reshaping the global entertainment industry, where real estate fortunes are now hostage to the streaming wars.
