Interior of the Alamo Warehouse Cinema.
Alamo Drawing Room
For the first time in 75 years, a major Hollywood studio has a chain of movie theaters.
Sony Pictures The company announced on Wednesday that it has acquired Alamo Drafthouse, the seventh-largest movie theater chain in North America. The theater company was acquired from owners Altamont Capital Partners, Fortress Investment Group and founder Tim League.
From 1948 to 2020, film distributors were prohibited from owning exhibition companies under the so-called Paramount Consent Decree. While studios are allowed to own individual theater sites—for example, Disney owns the El Capitan Theater and Netflix owns the Egyptian Theater and the Paris Theater in New York—the Justice Department is not allowed to own movie theater chains.
These decrees were repealed in 2020.
Alamo Drafthouse CEO Michael Kustermann will continue to run the dine-in theater chain and report to Ravi Ahuja, president and CEO of the newly formed Sony Pictures Experience unit.
The company’s 35 movie theaters will continue to be operated by Alamo Drafthouse, which will remain headquartered in Austin, Texas.
“We look forward to building on the innovation that has made Alamo Drafthouse a success, and of course we will continue to welcome content from all studios and publishers,” Ahuja said in a statement.
The acquisition comes after Alamo Drafthouse filed for Chapter 11 bankruptcy protection in 2021 due to disruptions caused by the coronavirus pandemic. It was rescued by a private equity firm. However, just last week, five North Texas locations closed after one franchisee filed for bankruptcy.
“We are excited to make history with Sony Pictures Entertainment and find the right home and partner for the Alamo Drawing Room Cinema,” said Kusterman. “We were created by movie lovers for movie lovers. We know how important this is to Sony, and this is further proof of their commitment to the theatrical experience. Together, we will continue to innovate and deliver for our teammates and moviegoers alike.” Exciting new opportunities come your way.
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