Sony Pictures Entertainment, the studio behind recent films like “Bad Boys: Ride or Die” and “The Garfield Movie,” has made a significant move into the exhibition business by acquiring the unique theater chain Alamo Drafthouse Cinema, along with the genre film festival Fantastic Fest.
Sony has stated that it will continue to welcome content from all studios and distributors at the dine-in theaters.
This acquisition comes after the termination of the Paramount Consent Decrees in 2020, which had previously banned Hollywood studios from owning movie theaters. Other studios, such as Netflix and the Walt Disney Co., already own several theaters in New York, Los Angeles, and other locations.
Alamo Drafthouse was founded in 1997 as a single-screen, family-owned repertory theater in Austin, Texas, and has since grown to 35 locations across North America. The theater chain has set itself apart in the exhibition landscape by offering drinks, dine-in food service, and a cool atmosphere that has become a favorite among movie enthusiasts.
Tim League, the founder of Alamo Drafthouse, expressed his excitement about joining forces with Sony Pictures Entertainment, stating that the studio has a deep respect and understanding of cinema’s ability to drive growth and create lasting cultural impact, which aligns perfectly with Alamo Drafthouse’s values.
For Sony, the acquisition of Alamo Drafthouse is also connected to its experiences initiatives, such as the Wheel of Fortune Live! Traveling tour and the Wonderverse space in Chicago. Ravi Ahuja, the president and chief operating officer of Sony Pictures Entertainment, also noted that the studio’s Crunchyroll films are particularly well-suited to the interests of Drafthouse fans.
Alamo Drafthouse has experienced both successes and challenges over the years.
In March 2021, the company filed for Chapter 11 bankruptcy, closed some locations, and canceled plans to open new ones. However, the company emerged from bankruptcy at the end of May 2021, under the ownership of League, Altamont Capital Partners, and Fortress Investment Group.
Michael Kusterman, a former executive at Caveman Foods, was appointed as Alamo CEO and will continue to lead the newly established Sony Pictures Experiences division, reporting to Ahuja.
In the past year, following the excitement of Barbenheimer, employees at the Alamo Drafthouse locations in Manhattan and Brooklyn voted to unionize. Similar efforts were attempted at locations in San Francisco and Austin but were met with resistance from the leadership.
The Associated Press contributed to this article.