Netflix Inc. has confounded observers since the beginning, first by renting DVDs by mail, then by producing original content for streaming, and now by buying a diner — or at least a lot where one used to be.
The streaming giant has bought a former Denny’s location kitty-corner from its Los Angeles headquarters in Hollywood.
Netflix (Nasdaq: NFLX) paid the restaurant’s parent company $25 million for the one-acre triangular property located at 1522 N. Van Ness Ave. on Sunset Blvd. and the 101 freeway.
The news was first reported by The Real Deal and confirmed by Reonomy data.
Co-CEO Reed Hastings has a cute tradition of celebrating business milestones by eating a steak dinner from Denny’s (Nasdaq: DENN) alone, but it’s unlikely that the acquisition was a vanity purchase: The restaurant has been torn down.
It’s unclear what Netflix will use the now-empty 42,000-square-foot lot for. At last count, the company occupies — or plans to — nearly 1.3 million square feet in Hollywood, but those are leases with firms such as Hudson Pacific Properties and Kilroy Realty.
The streamer does own another piece of Hollywood property, though: the Egyptian Theatre on Hollywood Blvd.