WarnerMedia has finalized a $2.2 billion deal to sell its space at 30 Hudson Yards in Manhattan to real estate giant Related Companies, and has signed a lease that will keep the media company there through early 2034. The transaction is expected to close in late second-quarter 2019.
AT&T said Tuesday it will use proceeds from the transaction to reduce its debt (the company had $170 billion in net debt at the end of 2018), a major focus since it acquired Time Warner for $81 billion and began restructuring the entertainment units including Turner, Warner Bros, CNN and HBO.
All the units recently began moving into their approximately 1.5 million square feet of office space at 30 Hudson Yards, putting the divisions under the same New York roof for the first time. The office tower located at the intersection of 33rd Street and 10th Avenue features 2.6 million square feet and is the second tallest in New York at more than 1,296 feet.
Last month, HBO announced it was closing the Hauppauge Communications Center on New York’s Long Island, with about 75 of the roughly 200 positions at the 35-year-old broadcast operations facility expected to be eliminated.
In 2014, Time Warner made a similar lease-back deal at Columbus Circle’s Time Warner Center in a $1.3 billion office-space sale to Related Companies and GIC.