NEW YORK CITY — Time Warner is tentatively planning to move its headquarters west to Hudson Yards, according to a report in the New York Times.
The move, a major score for the 26-acre property's developer The Related Companies, would bring the media company to an 80-story skyscraper above the West Side Rail Yards at West 33rd Street and 10th Avenue, the report said.
According to the Times, the deal — which still needs approval from the media giant's board — would involve Time Warner purchasing over half the space in the 2.4-million-square-foot tower at cost.
Under the proposed deal, Related would reportedly buy Time Warner's space in the Time Warner Center at Columbus Circle for $1.3 billion, then lease it back to the company until the new Hudson Yards skyscraper is complete, in about five years.
Both Related and Time Warner would not comment on the reported deal.
Related, which also built the Time Warner Center, has been working on securing tenants at Hudson Yards for years, but was only able to start construction on the first building of the massive project in December.
That 47-story tower will be anchored by a new headquarters for luxury handbag maker Coach. Cosmetics giant L'Oreal USA and German software maker SAP announced in April that they will also lease space in the skyscraper.
The Time Warner deal would allow Related to build its second tower, along with a platform over the rail yards. The completed Hudson Yards development would include an arts-filled Culture Shed, a hotel, condominiums, a school and retail space.