Sony Pictures Entertainment, the big movie company, just bought Alamo Drafthouse Cinema, the cool movie theater chain known for its fun drinks, lots of food, and strict rules about no talking or texting during movies. Sony bought it from Altamont Capital Partners, Fortress Investment Group, and Tim League, the guy who started Alamo Drafthouse.
Now that Sony owns Alamo Drafthouse, they’ll run it through a new part of their company called Sony Pictures Experiences. They said this buy shows how much they care about movie theaters and giving people fun experiences. Alamo had been quietly looking for a buyer for a while but couldn’t find one until now.
Michael Kustermann, who works for Alamo Drafthouse, will stay the boss and also lead Sony Pictures Experiences. He’ll report to Ravi Ahuja, a top executive at Sony Pictures. All 35 Alamo Drafthouse cinemas will still use the same name. The cool film festival they run, called Fantastic Fest, will keep going too. The main office will stay in Austin, Texas, and they have theaters in 25 big cities.
Ravi Ahuja said they love getting people out of their homes to have fun. Alamo Drafthouse is great because it offers a different movie experience and has a lot of loyal fans. This fits well with what Sony wants to do.
Sony has also been doing more live events. Last year, they opened Wonderverse Chicago, a place where you can try out virtual reality games based on movies like “Ghostbusters” and “Jumanji.” They also had “Zombieland”-themed bumper cars and “Bad Boys” racing simulators. They even started a live tour for the game show “Wheel of Fortune.”
Tim and Karrie League started Alamo Drafthouse in 1997 with just one small theater in Austin. Now it’s the seventh-largest theater chain in North America and serves over 10 million guests a year. Like many theaters, Alamo was hit hard by the pandemic. They had to close many of their locations or run them with fewer people for a long time. They filed for bankruptcy in March 2021 but came back less than four months later. Despite the tough times, Alamo did better than many other theaters. Last year, their box office revenue went up by 30%, while the whole industry only went up by 21%.
Tim League is super excited about joining Sony Pictures. He said Sony really understands how movies can grow and make a big impact on culture, which matches perfectly with what Alamo Drafthouse is all about.
Tom Rothman, the boss at Sony Pictures, has always been a big supporter of movies in theaters. Even when other studios focused more on streaming, Rothman kept his movies in theaters. He said Alamo Drafthouse has always valued making movies and the theater experience special, which is something both companies share. He’s really happy about this deal.
They didn’t say how much money Sony paid to buy Alamo Drafthouse. Goldman Sachs was the exclusive financial advisor for Alamo Drafthouse during the sale.
Michael Kustermann said this is a big deal and shows that Sony believes in movie theaters. He mentioned that Sony used to own theaters in the 1990s when rules got looser. So, they know what they’re doing. He said Alamo Drafthouse was made by people who love movies for people who love movies. Together with Sony, they will keep bringing new and exciting things for their team and moviegoers.
Some streaming companies have also bought theaters. Netflix bought two, one in Los Angeles and one in New York. Amazon bought a theater in Culver City. It’s not clear if other entertainment companies will buy their own theater chains after this.
The National Association of Theatre Owners, which is a big group for movie theaters, is happy about the news. They said Sony’s investment in Alamo Drafthouse shows that movie theaters are still important and worth investing in. Sony has always supported movie theaters, and Alamo is great at making fun, new experiences for movie fans. Sony’s investment proves that movie theaters are valuable and central to entertainment.
Source: Variety.
