Sony Pictures is acquiring Alamo Drafthouse.
Located in Austin, Texas, the Alamo Drafthouse cinema chain has grown steadily, with 35 theaters in 25 metro areas. Its unique dine-in and cocktail menus, along with its reputation as an ideal haven for movie enthusiasts due to its no-talking policy, have won it a loyal fanbase. However, the Covid-19 pandemic took a toll on the business, leading to bankruptcy in March 2021 and the closure of various locations.
Despite these challenges, the company experienced a 30% increase in box office revenue in the following year. Sony announced its acquisition of the struggling theater chain in a recent press release, with the company now to be managed under its new division, Sony Pictures Experiences (SPE). Michael Kustermann, CEO of Alamo Drafthouse, will continue in his role while reporting to Ravi Ahuja, President and COO of SPE.
Sony, unlike many other studios that have ventured into streaming, has signaled its support for traditional movie theaters. SPE's commitment to cinemas is further evident in its other ventures like Wonderverse, a Chicago-based immersive entertainment space, and Wheel of Fortune LIVE!, a nationwide tour. According to multiple reports from The Hollywood Reporter and other sources, Sony Pictures CEO and chairman Tom Rothman has reiterated his support for the theatrical exhibition.
The deal between Sony and Alamo Drafthouse also included the acquisition of the latter's annual film festival, Fantastic Fest, which specifically caters to different genres such as horror and science fiction. Altamont Capital Partners, Fortress Investment Group, and founder Tim League had previously owned the chain.
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The acquisition of Alamo Drafthouse by Sony Pictures is expected to boost its presence in the movie theater business. Sony, recognizing the potential of the media sector, intends to leverage Alamo Drafthouse's unique offerings and strong fanbase to promote its films and enhance its divisions like Sony Pictures Experiences.
