Interior of an Alamo Drafthouse movie theater.
Alamo Draft
For the first time in more than 75 years, a major Hollywood studio will own a chain of movie theaters.
Sony Photos has acquired Alamo Drafthouse, the seventh-largest movie theater chain in North America, the company announced Wednesday. The film company was purchased from owners Altamont Capital Partners, Fortress Investment Group and founder Tim League.
Between 1948 and 2020, film distributors were prohibited from owning an exhibition company under what became known as Supreme Consent Decrees. While studios were allowed to own individual movie locations (Disney owns the El Capitan Theater and Netflix owns the Egyptian Theater and New York's Paris Theater, for example), the U.S. Department of Justice banned ownership of a cinema chain.
The decrees were abolished in 2020. Now, some four years later, Sony is the first to invest in a theater company.
Alamo Drafthouse CEO Michael Kustermann will remain at the helm of the theater chain and report to Ravi Ahuja, president and CEO of the newly formed Sony Pictures Experiences division.
The company's 35 theaters will continue to be operated by Alamo Drafthouse and its headquarters will remain in Austin, Texas.
“We look forward to building on the innovations that have made Alamo Drafthouse successful, and of course we will continue to welcome content from all studios and distributors,” Ahuja said in a statement.
The acquisition comes after Alamo Drafthouse filed for Chapter 11 bankruptcy protection in 2021 due to disruptions from the Covid-19 pandemic. He was rescued by a private equity firm. However, just last week, five North Texas locations closed after a franchisee filed for bankruptcy.
“We are excited to make history with Sony Pictures Entertainment and have found the right home and partner for Alamo Drafthouse Cinema,” said Kustermann. “We were created by movie lovers for movie lovers. We know how important this is to Sony and it is further proof of their commitment to the theatrical experience. Together we will continue to innovate and provide new and exciting opportunities for our teammates and movie fans. similar.”
