Sony Acquires Alamo Drafthouse Cinema

Sony Pictures Entertainment has acquired the popular US-based Alamo Drafthouse Cinema chain, as announced by both parties on Wednesday, June 13, TapTechNews reports.

In the press release, Sony stated that it will manage these cinemas through the newly established Sony Pictures Experiences division while preserving the unique dine-in movie experience of Alamo Drafthouse. Alamo Drafthouse will continue to operate all its 35 cinemas under the Alamo Drafthouse brand in 25 metropolitan areas, and the current CEO, Michael Kustermann, will also remain in his position. In addition, the FantasticFest held by Alamo Drafthouse will continue to be operated by the company.

The seller of this acquisition by Sony is a consortium consisting of Altamont Capital Partners, Fortress Investment Group, and Alamo founder Tim League, which obtained ownership of Alamo Drafthouse after it filed for bankruptcy protection in 2021.

This acquisition by Sony is particularly notable because the Paramount Decree was repealed in 2020. This decree originated from a 1948 Supreme Court ruling aimed at promoting competition and consumer choice. At that time, the court forced movie companies to sell the cinemas they owned. However, with the increasing diversification of the way audiences watch movies nowadays, this decree was repealed by the US Department of Justice.

TapTechNews notes that streaming giant Netflix also owns its own cinemas in New York and Los Angeles.