In a surprising announcement on Wednesday, Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema, the theater chain known for its dine-in options and strict no-phone policies, the company announced.
The theater chain will be managed by a new division within SPE, Sony Pictures Experience, and will also have Fantastic Fest, the genre film festival owned and operated by Alamo, included in the acquisition.
Alamo Drafthouse’s current CEO Michael Kustermann will remain with the company in the acquisition, and Tim League, the founder of the cinema chain, will also remain, to help “expand our company vision to be the best damn cinema that has ever, or will ever, exist,” according to League.
What does it mean for Sony Pictures’ Alamo Drafthouse Cinema?
In a statement on the move, Sony Pictures Entertainment says this “reinforces” their “long-held commitment to theatrical exhibition.” They also assured fans that content from “all studios and distributors” would be welcome in the theaters.
“We believe strongly in engaging entertainment fans outside the home in fun and distinctive ways as seen most recently with our Wheel of Fortune LIVE! traveling tour, and the opening of Wonderverse in Chicago,” said Ravi Ahuja, President and COO of SPE. “Alamo Drafthouse’s differentiated movie-going experience, admired brand and devoted community fit well with this vision…We look forward to building upon the innovations that have made Alamo Drafthouse successful and will, of course, continue to welcome content from all studios and distributors.”
The move itself is a bit of a surprise, as this one of the rare times in nearly 80 years that a movie studio has purchased and owned a theater chain. Prior to 2020, this act was barred for several studios due to a 1948 anti-trust Supreme Court decision that would come to be known as the Paramount Decree.
As restrictions loosened, however, Columbia Pictures — a member of the Sony Pictures Motion Picture Group — purchased a 58% interest in the Walter Reade circuit, and also acquired Lowe Theaters in 1987, so this isn’t Sony’s first time getting into the business.
As far as any changes go, it’s unknown exactly what, if any, will be done. Reports of Alamo looking for buyers had been surfacing for some time now, and at least for now, it doesn’t seem like much should change going forward with the company.
