Wait for the blockbuster tax deal to pass as Warner Bros. Discovery (WBD.US) plans to invest $8.5 billion in Nevada.

Warner Bros. Discovery (WBD.US) said on Tuesday that it would invest at least $8.5 billion in a new studio in Las Vegas if Nevada provides promised tax incentives.

The media giant is partnering with the University of Nevada, Las Vegas and family real estate developer Birtcher Development to lease and operate a production facility that will be called the Warner Bros. Nevada Studio.

The facility will be located on the Harry Reid Research and Development campus of the University of Nevada, Las Vegas, on 34 acres, and will provide full-service film, television and other production facilities.

The partnership depends on the outcome of a proposal that was originally introduced by state senator Roberta Lange at the 2023 legislative session.

The financial incentives are attractive to Warner Bros. because they are trying to cope with rising production costs, while declining consumer use of cable and declining advertising revenues have further exacerbated the problem.

Warner Bros. Discovery reduced the value of its television assets by about $9.1 billion earlier this month, reflecting declining television ratings and advertising revenue.