Sony Pictures Entertainment (SPE) has recently acquired Alamo Drafthouse Cinema, a move that underscores the studio's reentry into the exhibition business. The acquisition follows Deadline's initial report about the chain being up for sale and attracts multiple suitors from various studios. This strategic move by Sony harks back to its ownership of the Loews Theater chain in the 1990s, a period marked by the memorable pre-movie jingles. Alamo Drafthouse, previously owned by Altamont Capital Partners, Fortress Investment Group, and founder Tim League, will now be managed within SPE under a new division called Sony Pictures Experiences.
Under this new arrangement, Michael Kustermann will continue as CEO of Alamo Drafthouse Cinema and head Sony Pictures Experiences, reporting to Ravi Ahuja, President and COO of SPE. Thirty-five cinemas across 25 metro areas will operate under the Alamo Drafthouse brand, with the company's headquarters remaining in Austin, Texas. Additionally, the deal encompasses Alamo Drafthouse-owned genre Fantastic Fest, ensuring continuity in its operation within the circuit.
The acquisition is not only a strategic business move but also a significant marketing opportunity for Sony. Alamo Drafthouse's unique movie-going experience, coupled with its devoted community and admired brand, aligns well with Sony's vision of engaging entertainment fans in distinctive ways. Ahuja expressed enthusiasm about the alignment of Alamo Drafthouse's audience interests with Sony's Crunchyroll business, emphasizing the studio's commitment to welcoming content from various studios and distributors.
Founded in 1997 by Tim and Karrie League, Alamo Drafthouse has evolved from a single-screen repertory theater into North America's 7th largest theater chain, known for its blend of cinema, dining, and entertainment offerings. The acquisition signifies a shared commitment to the theatrical experience between Sony and Alamo Drafthouse, as emphasized by the statements from Tim League, Tom Rothman (Chairman and CEO of Sony Pictures Motion Picture Group), and Michael Kustermann. With Goldman Sachs & Co. LLC serving as exclusive financial advisor to Alamo Drafthouse, the acquisition marks a significant milestone in the evolution of both companies, promising exciting new opportunities for moviegoers and teammates alike.
Tags: alamo drafthouse, sony pictures, movie theater
