The Irish Examiner revealed negotiations were at an advanced stage earlier this month to create an international film industry hub at the former Dell plant.
Limerick City and County Council has now bought the 350,000sq ft former industrial building and is in continuing talks with Ardmore Studios in Wicklow which wants to expand its film and TV studios.
It is estimated more than 750 jobs will be created.
A major US production company wants to move into the new studios for a film it plans to begin shooting early next year. Limerick City and County Council is now finalising discussions with Ardmore Studios.
Ossie Kilkenny, a director of Ardmore, has had numerous meetings in Limerick with council officials.
The new studio building is located on a 25 acres site at Plassey Technological Park next the UL campus.
The building owned by Limerick businessman PJ Noonan was last year leased to the City of Culture and thousands attended a number of major events when it opened as “The Culture Factory” venue.
Limerick City and County chief executive, Conn Murray, said: “The purchase is an important step in the local authority’s plan to create an international film centre and major sustainable employment in Limerick.”