Hollywood's Power Broker Faces Financial Struggles
The Struggles of a Film Industry Giant
Michael Hackman, once a major player in the global film and television production industry, is now facing significant challenges as the sector experiences a downturn. Hackman Capital Partners, which he founded, has been hit hard by the decline in film and TV production, leading to a series of strategic moves aimed at stabilizing its financial position.
MBS Group, a key part of Hackman’s portfolio, has engaged AlixPartners to help restructure its debt and secure new financing. This decision comes as the company has reduced its workforce by approximately 100 employees out of a total staff of 1,400 over the past two weeks. Additionally, Hackman has stepped down from the MBS board, signaling a shift in his involvement with the company.
The decline in film and TV production has had a ripple effect across the entertainment industry, impacting everything from landlords to caterers and costume makers. According to industry tracker ProdPro, US studios saw a 35% drop in output last year compared to the peak in 2022, with an additional 12% decline in the first half of 2025.
Hackman Capital, known as the world's largest owner of film and TV soundstages, acquired MBS from Carlyle Group Inc. in 2019 for $650 million. Affinius Capital Management, formerly Square Mile Capital Management, is the largest shareholder of MBS. The company leases services and facilities such as the Kaufman Astoria Studios in New York, Pinewood Studios in London, and Netflix Studios Albuquerque.
MBS operates numerous stages owned by Hackman, making him one of the company’s most significant clients. Over the past decade, Hackman embarked on an aggressive acquisition strategy, leveraging low interest rates and high demand for studio space. His company manages $10 billion in assets, according to its website.
However, major film and TV companies like Walt Disney Co., Paramount Skydance Corp., and Warner Bros. Discovery Inc. have scaled back their spending, resulting in thousands of job cuts. Strikes by writers and actors further disrupted production in 2023. Meanwhile, Paramount is preparing to bid for Warner Bros., potentially reducing the number of legacy Hollywood studios to four.
Hackman faced financial difficulties earlier this year when he failed to repay $1.1 billion in debt on the Radford Studio Center, a historic facility that hosted shows like "Gilligan’s Island" and "Seinfeld." He has been delinquent on the debt for July and August, according to mortgage filings.
In response to falling occupancy, Hackman has explored alternative uses for his soundstages, including leasing them to social-media influencers and considering pop-up events for food and drink brands. These strategies aim to diversify revenue streams amid the industry's downturn.
Hackman was not alone in betting on the production boom. His partnership with Affinius has involved over 100 properties, while other firms like Blackstone Inc. and Apollo Global Management Inc. have also invested heavily in soundstage businesses.
Recent developments highlight the broader challenges in the industry. Herc Holdings Inc. sold its Cinelease business to Zello for $100 million after rental revenue fell nearly 40% in the second quarter. Arri Group, known for cameras used in films like "Oppenheimer" and "Dune," is considering a sale and has appointed AlixPartners to restructure its operations.
Despite these challenges, some companies are finding ways to adapt. Hudson Pacific Properties Inc., which acquired production space with Blackstone, reported positive traction in its studio business. However, shares of Hudson Pacific have lost 90% of their value since 2020. Its Quixote Studios subsidiary cut 82 employees in July, but the company claims it is well-positioned due to its lack of debt.
As the film and TV industry continues to navigate these turbulent times, the strategies adopted by companies like MBS and Hudson Pacific will be crucial in determining their long-term success.
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