In a strategic reshuffling that reflects the evolving studio priorities of Warner Bros. Discovery, HBO has officially ended its long-standing agreement at The Lot at Formosa, vacating its exclusive lease on the iconic West Hollywood campus. The move marks the end of an era for a studio that had called the 11-acre production facility home for hits like Euphoria, Big Little Lies, and True Blood.

The decision comes as Warner Bros. Discovery streamlines operations under its new corporate structure, prioritizing internal real estate assets. Going forward, HBO’s productions will now be based at the Warner Bros. lot in Burbank, as the company consolidates content operations and maximizes occupancy across its owned-and-operated stages.

Originally signed in 2021, HBO’s lease at The Lot included all seven soundstages—spanning over 86,000 square feet—along with historic office buildings and production support spaces totaling more than 160,000 square feet. At the time, the deal was seen as a major footprint expansion for WarnerMedia amid a post-pandemic production surge.

Now, as the industry undergoes a correction following the twin strikes of 2023 and ongoing cost pressures, studio operators are doubling down on owned infrastructure. “Warner Bros. has incredible stage assets across the greater LA area,” said a source close to the matter. “With the new corporate structure, the priority is to keep those in-house spaces filled with internal content.”

The timing of HBO’s exit, however, may prove fortuitous for The Lot and its new ownership structure. In late June, The Lot at Formosa underwent a $229.8 million internal recapitalization led by CIM Group, giving the property a simplified ownership model and leaner cost structure. With its financials restructured and debt load lightened, the studio campus is now aggressively courting new tenants—particularly streaming series and feature productions looking for a well-located home base.

The shift aligns with broader trends in California’s production landscape. In recent weeks, the state passed a revamped and expanded film and TV tax incentive program, aimed at attracting global productions back to Los Angeles. With its seven soundstages, modern creative office space, and prime West Hollywood location, The Lot is poised to capitalize on that momentum.

Stagerunner has learned that several high-profile productions are already in conversations to lease space on the lot. Miramax, which inked a 16,000-square-foot headquarters deal earlier this year, is among the tenants anchoring its next chapter.

As Hollywood resets after a turbulent few years, The Lot at Formosa is once again open for business—and ready to write its next act.