Sony Pictures Entertainment, a leading Hollywood movie studio part of the Sony Group from Tokyo, has purchased the Alamo Drafthouse Cinema chain, which includes two locations in El Paso.
The acquisition was announced on Wednesday, June 12. This move comes three years after the Austin-based Alamo Drafthouse, known for pioneering the dine-in cinema experience, successfully emerged from Chapter 11 bankruptcy protection.
First Acquisition: Sony Pictures Entertainment Buys Alamo Drafthouse Cinema
Sony Pictures Entertainment has acquired the Alamo Drafthouse Cinema chain, marking a studio's first purchase' since the 2020 end of a longstanding antitrust decree. This decree had previously prevented film distributors from owning movie theaters, per CNBC.
The Paramount Consent Decrees, enacted in 1948, mandated that major studios sell off their cinemas, a decision that significantly shaped the U.S. film industry for over 70 years.
While this restriction applied to certain studios like Warner Bros., 20th Century Fox, and MGM-requiring them to obtain court approval to re-enter the theater business-it did not extend to others such as Universal, Columbia, and United Artists, which did not own theaters then.
This historical backdrop facilitated Columbia Pictures, now a part of Sony, to invest in the Walter Reade Organization in the late 1980s and later acquire the Lowes Theater chain.
Similarly, Disney and Netflix have also ventured into theater ownership, with Disney taking over the El Capitan Theatre and Netflix acquiring The Egyptian Theatre in Los Angeles and the Paris Theater in New York.
Michael Kustermann will continue as CEO of Alamo Drafthouse, reporting to Ravi Ahuja, president and CEO of the newly formed Sony Pictures Experiences division.
Alamo Drafthouse Cinema chain has 35 corporate-owned locations across the United States. El Paso Times reports that this acquisition makes Alamo the seventh-largest movie theater chain in North America.
Sony has stated that it will maintain its relationships with Alamo's 15 franchisees, including those managed by Triple Tap Ventures. Triple Tap Ventures operates Alamo theaters in West and East El Paso, Houston, and Lubbock, home to Texas Tech University's main campus.
Shared Commitment to Film Art and Enjoyment
According to The U.S. Sun, Tom Rothman, chairman and CEO of Sony Pictures Motion Picture Group, expressed his enthusiasm about acquiring Alamo Drafthouse Cinema.
He mentioned that Alamo Drafthouse deeply respects the art of filmmaking and the movie theater experience, principles that are closely shared with Sony Pictures. Rothman said he is thrilled about the acquisition, emphasizing the shared commitment to preserving the art and enjoyment of film.
According to the recent agreement, Alamo Drafthouse will maintain its 35 theaters and continue using its current brand name. The deal also encompasses Fantastic Fest, a film festival owned by Alamo Drafthouse.
Ravi Ahuja, president of Sony Pictures Experiences, highlighted the acquisition's alignment with Sony's strategy of engaging entertainment fans through unique and interactive experiences. This approach has been evident in projects like the "Wheel of Fortune LIVE!" tour and the opening of "Wonderverse" in Chicago.
Ahuja mentioned that Alamo Drafthouse's distinctive movie-going experience, respected brand, and loyal community perfectly match Sony's vision. He also pointed out that Sony's Crunchyroll business shares common interests with Alamo's audience, reinforcing the strategic fit.
Ahuja reiterated Sony's commitment to building on Alamo Drafthouse's innovations and confirmed that the theaters would continue to feature films from all studios and distributors.
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