Movies

Disney plans to vacate storied Fox lot in Century City by year’s end

BBG News

Two of entertainment’s most famous brands, Fox and Disney, are parting ways in Century City.

On Tuesday, Disney Company admitted that they will be leaving the iconic Fox Studio Lot, which has been their main base since their acquisition of most of Rupert Murdoch’s 21st Century Fox’s entertainment assets in 2019. The $71.3-billion deal did not cover studio property ownership, but it included a clause stating that Disney would lease the premises for at least seven years.

Disney’s lease for space on Fox’s Pico Boulevard property in Los Angeles expires next March.

According to sources within the company, Disney does not intend to extend its current lease and is planning to vacate the premises by the end of this year. These individuals are not permitted to discuss company matters publicly.

This decision forces Fox Corporation to seek new occupants for the soundstages and office buildings that have been the backdrop for numerous movies and TV shows over the years. Iconic films such as “Miracle on 34th Street,” “The Seven Year Itch,” and “The Sound of Music” were filmed here, along with Fox Sports, the Fox broadcast network, and the writers’ room for “The Simpsons.

Fox receives $50 million a year for leasing out the space, according to regulatory filings.

Disney is the largest tenant, but Fox executives say they are bullish on finding new occupants.

Fox stated on Tuesday that the Fox Lot stands out for its exceptional location and top-tier production and editing resources.

Hollywood Inc.

As a movie enthusiast, I’ve noticed how Disney has been gradually distancing itself from its Fox roots since the acquisition in 2019. Last year, in an effort to avoid any potential confusion, Disney decided to phase out the “Fox” branding from their logos and assets that came with the Fox deal. This change was significant because it separates Disney’s new properties from those still under Rupert Murdoch’s empire, such as Fox News.

Ever since the acquisition, I’ve continued to occupy my familiar workspace within the television studio lot – a privilege that many Westside LA residents find appealing due to its convenience. It allows me to maintain a shorter commute, which is a significant advantage for someone like me who values time and location.

Over the last six years, Building 103 on the south-eastern part of the lot has served as a representative of Disney.

Instead, Disney has been moving teams over the course of a year to their existing studio lot in Burbank, which is also home to ABC and Disney Animation.

Disney aims to establish a collaborative creative environment encompassing their television divisions, with executives previously based at the Fox studios among those integrated, as per sources who preferred anonymity.

The firm chose not to disclose details about their strategies concerning the Disney-possessed TV shows still based at the Fox studio, such as the dramas “9-1-1” and “9-1-1: Lone Star,” which are created by Ryan Murphy, Brad Falchuk, and Tim Minear.

The initial plans for the Disney-Fox deal, masterminded by Disney CEO Bob Iger and Murdoch, anticipated that the Century City complex would be among the properties transferred to Disney in the transaction.

However, Lachlan Murdoch, the eldest son who serves as CEO of Fox, firmly stated that his company should retain the valuable property where Shirley Temple, Marilyn Monroe, and Mel Brooks once filmed. This land, amounting to 99 acres, was originally purchased by Studio founder William Fox between Santa Monica Boulevard and Pico Boulevard 101 years ago. After suffering significant financial losses due to the 1963 film “Cleopatra,” Fox sold off a large portion of its backlot, which is now a significant part of Century City.

Lachlan Murdoch, who works at the Art Deco administrative building, considered Fox lot as a vital organ within his company. He was also aware of the worth of soundstages and supplementary filming facilities, which have been sought after due to the surge in production to back the debut of various streaming platforms.

Business

Over time, as an iconic New York City set on Fox Studios’ backlot grew old, there came a necessity for a replacement. This set serves as the focal point within a movie studio that holds a significant role in the folklore of Hollywood.

Conversely, post-production in Los Angeles hasn’t fully bounced back following the 2023 writers’ and actors’ strikes, resulting in numerous filming projects being enticed away by other regions and nations offering attractive tax benefits.

The transition arises since Fox has been pursuing city endorsement for a $1.5-billion expansion of its Century City site. This plan involves constructing over 2 million square feet of additional buildings, featuring numerous soundstages, postproduction facilities, and an office building that faces Avenue of the Stars.

In the process of renovation, it’s planned to relocate four vintage bungalows, which are situated near the heart of the property, to a new spot that’s more proximate to Olympic Boulevard.

Despite Disney’s exit, Fox remains undeterred in their grand plans for expanding Century City, as suggested by a source who isn’t permitted to make public statements. At this stage, Fox’s project is undergoing preliminary city approvals.

Disney obtained several lucrative properties with their purchase of Fox, such as “Avatar,” “Alien,” and the Marvel characters “X-Men” and “Deadpool.” Additionally, they now have control over the streaming platform Hulu, which is headquartered in Santa Monica.

Even though some financial experts and investors believe that Disney paid too much for the assets, this acquisition left the media giant vulnerable when the COVID-19 pandemic occurred in 2020.

During that particular season, Disney increased its borrowing as its theme parks were forced to close, cinemas shut down, and sports leagues temporarily halted their activities.

Disney has looked to cut costs for the last couple of years.

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2025-04-02 02:31

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