Sony Pictures Entertainment has announced that it has acquired Alamo Drafthouse Cinemas, a dine-in movie theater chain that screens new releases and classic films, as the studio continues to expand into experiential entertainment.
The deal includes 35 Alamo Drafthouse properties across 25 metropolitan areas. Terms of the deal were not disclosed. Michael Kusterman will remain CEO of Alamo Drafthouse and serve as CEO of Sony Pictures Experience, a new division of Sony, according to a Sony statement.
All Alamo Drafthouse locations will continue to operate under the Alamo Drafthouse name and the company’s headquarters will remain in Austin, Texas, according to the statement.
Sony acquired Alamo Drafthouse from Altamont Capital Partners, Fortress Investment Group and Tim League, the sellers who took ownership of the company following the acquisition of Alamo Drafthouse. The company filed for Chapter 11 bankruptcy protection. The company restructured in March 2021 to weather the impact of the pandemic on the industry.
Alamo Drafthouse, the seventh largest movie theater chain in North America, was founded by Tim and Carrie League in 1997. The first theater opened in Austin as a dine-in cinema.
The league said in a statement that Sony Pictures “His deep respect and understanding of film’s power to foster growth and create lasting cultural impact aligns perfectly with the ideals we stand for at Alamo Drafthouse.”
Sony also acquired Alamo Drafthouse’s genre film festival Fantastic Fest.
Alamo Drafthouse has about 40 locations across the United States, most of which are in Texas, but also has theaters in California, Colorado, Florida, Illinois, New York, and North Carolina. It has four locations in the Dallas-Fort Worth area and one in Minnesota. Closed in early June After an Alamo Drafthouse franchisee filed for Chapter 7 bankruptcy protection.
Sony’s acquisition of Alamo Drafthouse marks the first time a traditional film studio has owned a cinema chain in more than half a century. The Supreme Consent Decree went into effect around 1948. It also banned Hollywood studios from owning movie theaters, a statute enacted after federal courts ruled that studios had fixed ticket prices and held monopolies over movie distribution.
Federal Court The Paramount Consent Decree ended in 2020.He said new technology has given rise to a range of film platforms that didn’t exist when the decree was enacted, including cable, broadcast and streaming services.
Goldman Sachs acted as financial advisor to Alamo Drafthouse on the transaction.
