Sony Pictures Acquires Alamo Drafthouse Cinema in Landmark Deal

Sony Pictures Entertainment (SPE) has announced its acquisition of the theater chain Alamo Drafthouse Cinema.

As The Hollywood Reporter points out, the landmark deal marks the first time a major Hollywood studio has owned a movie theater in over 75 years and comes after Alamo Drafthouse filed for Chapter 11 bankruptcy in 2021 during the COVID-19 pandemic.

Alamo Drafthouse will be folded into SPE’s newly established division Sony Pictures Experiences, with Michael Kustermann remaining as CEO. The chain will continue to operate all 35 of its cinemas across 25 metro areas under the Alamo Drafthouse brand.

“We are excited to make history with Sony Pictures Entertainment and have found the right home and partner for Alamo Drafthouse Cinema,” said Kustermann in a statement. “We were created by film lovers for film lovers. We know how important this is to Sony, and it serves as further evidence of their commitment to the theatrical experience. Together we will continue to innovate and bring exciting new opportunities for our teammates and moviegoers alike.”

Founded in 1997 by Tim and Karrie League as a single-screen theater in Austin, Texas, Alamo Drafthouse has grown into one of North America’s largest cinema chains. Alamo differentiated itself from other theaters through offerings like food and drink service.

US film distributors were barred from owning theaters from 1948 until 2020 after a Supreme Court ruling breaking up the old Hollywood system. At the time, the major studios had top-down control of all aspects of filmmaking, including talent, production, and theaters.

In 2019, Netflix saved New York’s Paris Theater from being shut down. The streamer followed up by acquiring the Egyptian Theatre in Los Angeles one year later.