LOS ANGELES, CA – Paramount Pictures and developer Rick Caruso announced Tuesday a long-term agreement to reopen the Bay Theater in Palisades Village in Pacific Palisades, which has been closed since the January 2025 Palisades Fire.
Under the agreement announced Oct. 13, Skydance-owned Paramount takes over the lease of the theater, which Netflix had held since 2021. Paramount selected THE LOT, a La Jolla-based luxury dine-in theater chain, to operate the cinema, and the theater is to reopen later this year.
Financial terms of the lease were not disclosed.
Paramount takes over the Netflix lease
Caruso owns Palisades Village, the shopping and dining center where the theater is located. The lease Paramount now holds is described as long-term.
Netflix had leased the venue beginning in 2021. Caruso praised Netflix CEO Ted Sarandos for his stewardship of the theater as the change was announced.
Paramount did not announce a specific length for the new lease.
THE LOT chosen to run the cinema
THE LOT operates luxury dine-in theaters and has four California locations, according to the announcement. Its founder and CEO is Adolfo Fastlicht.
Paramount, rather than Caruso, picked the operator. The announcement did not say whether the agreement involves any other changes to the building.
First-run films, classics and special events planned
The theater is to show first-run theatrical releases from all studios. It is also to offer nostalgic classics, curated events and special programming.
The announcement describes the experience as luxury seating, state-of-the-art sound and projection, in-theater dining and signature cocktails.
Ellison: a place to gather around cinema
Paramount CEO David Ellison said in a statement that, together with Caruso, the company is “proud to help bring the Bay back to life as a place for the Pacific Palisades community to gather around the shared experience of cinema.”
The announcement frames the theater as part of the community’s return to Palisades Village, which has its own recent reopening to point to.
Palisades Village reopened in August
Palisades Village itself reopened to the public Aug. 15, 2026, after a restoration that cost about $100 million. The Bay Theater was not part of that opening.
Mayor Karen Bass and Caruso marked the reopening with a ribbon-cutting followed by a day of events, according to a statement from the mayor’s office. Bass said the reopening was a critical milestone in the recovery of Pacific Palisades and thanked Caruso for his partnership with the city.
Bass also said it is imperative that residents have places to eat, shop and come together so they do not have to leave their community.
Los Angeles City Councilmember Traci Park, who represents District 11, called the village’s reopening “one of many positive steps in this journey” and said it is one of the biggest developments for spurring business and economic recovery.
The fire that closed the theater
The Palisades Fire began Jan. 7, 2025, in Pacific Palisades and was fully contained Jan. 31, 2025, according to CAL FIRE’s incident page. The agency lists 23,448 acres burned, 6,845 structures destroyed and 975 damaged.
CAL FIRE also lists 12 civilian fatalities. The incident was managed by the Los Angeles City Fire Department.
Reopening date to be announced in coming weeks
Paramount and Caruso said the theater is to reopen later this year and that a specific date will be announced in the coming weeks. For now, the agreement covers the lease, the choice of THE LOT as operator and the planned mix of first-run films, classics and special programming.
