Sony Pictures acquires Alamo Drafthouse theater chain, marking first major Hollywood studio ownership in 75 years

From CNBC: 2024-06-12 15:45:55

Sony Pictures has acquired Alamo Drafthouse, the seventh-largest movie theater chain in North America, marking the first time a major Hollywood studio will own a theater chain in over 75 years. The purchase comes after the abolishment of the Paramount Consent Decrees in 2020, allowing studios to invest in theatrical companies.

Alamo Drafthouse CEO Michael Kustermann will remain in charge, reporting to Sony Pictures Experiences division President and CEO Ravi Ahuja. The company’s 35 theaters will continue to operate under Alamo Drafthouse in Austin, Texas. Sony plans to build upon the cinema chain’s success and continue welcoming content from all studios and distributors.

Alamo Drafthouse filed for Chapter 11 bankruptcy protection in 2021 due to pandemic disruptions but was recently rescued by a private equity firm. Five North Texas locations closed last week after a franchisee filed for bankruptcy, highlighting the challenges faced by the cinematic industry. Sony’s acquisition of Alamo Drafthouse signals a commitment to preserving the theatrical experience.



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