By In a major deal, Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema – the first time a major Hollywood studio has acquired a U.S. movie theater in more than 75 years.
Starting in 1948, the U.S. Department of Justice prohibited film distributors from owning an exhibition company under the Paramount Consent Decrees which arose from a Supreme Court ruling.
The decrees effectively dismantled the old Hollywood studio system. The decrees were rescinded in 2020, and Sony marks the first big film studio to step forward and do so – snapping up Alamo after it filed for Chapter 11 bankruptcy protection in 2021.
Streaming giants Netflix and Amazon have purchased cinemas like the Egyptian Theatre in L.A. and an old ArcLight in Culver City respectively.
Tom Rothman, Chairman and CEO of Sony Pictures Motion Picture Group, says in a statement:
“Alamo Drafthouse has always held the craft of filmmaking and the theatrical experience in high esteem, which are fundamental shared values between our companies. I’m jazzed that our company is doing this.”
The independent Drafthouse chain has 35 locations which will continue to be run by Alamo CEO Michael Kustermann under a new division that he’ll also be in charge of – Sony Pictures Experiences.
The Alamo Drafthouse-owned Fantastic Fest is included in the acquisition and will continue to be operated by Alamo Drafthouse with the company headquarters remaining in Austin, Texas.
Source: THR
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