This just like the Detroit auto plants that kept shedding shifts until the whole industry ghosted the city.
Quixote Studios Lays Off 70, Winds Down L.A. Locations Amid Production Slump.
Hudson Pacific Properties bought the company in 2022 for $360 million, but has since had to write down the entire value of its Quixote unit due to heavy operating losses.
“Obviously, clearly it was not the best deal we’ve ever done, but if you compare that to everything else we’ve done, then we’re doing okay,” said Victor Coleman, the chairman and CEO of Hudson Pacific, at an investor conference in March. “We think that we have multiple alternatives with that asset that we can make it zero or at least flat at the end of the year.”
Quixote is kind of a big deal in L.A., where film and TV production jobs are down something like 40% from post-COVID highs.
Previously: Hollywood Is Sick — but It’s L.A. That’s Dying.
Hollywood as we know it is sick — not the kind of sick you might usually think of with the woke agenda pushing, child-actor grooming, and all the rest — but the “sick and dying” kind of sick.
Netflix’s Chief Global Affairs Officer warned Monday that Hollywood will suffer billions of dollars worth of job losses if rival Paramount Skydance succeeds in buying Warner Bros. Discovery out from under the streaming giant’s buyout bid.
During an interview on Fox Business Network, Clete Willems said, “Paramount has identified $6 billion in synergies in the offer that they made, which is code for $6 billion in job cuts.”
“They have what we call the Noah’s Ark problem,” Willems continued, “which is, if they effectuate this deal, they’re going to have two of everything.”
h/t Stephen Green