A theater chain is being acquired by Sony Pictures, marking the first time in 75 years that a studio has owned a movie theater.

• Alamo Drafthouse, the seventh-largest movie theater chain in North America, has been acquired by Sony Pictures.
• In over 75 years, a major Hollywood studio has acquired a movie theater chain for the first time.
• Alamo Drafthouse will continue to operate the company's 35 cinemas and its headquarters will remain in Austin, Texas.

A major Hollywood studio is acquiring a movie theater chain for the first time in over 75 years.

The seventh-largest movie theater chain in North America, Alamo Drafthouse, has been acquired by a company, according to an announcement made on Wednesday. The cinema company was previously owned by Altamont Capital Partners, Fortress Investment Group, and founder Tim League.

From 1948 to 2020, film distributors were prohibited from owning an exhibition company under the Paramount Consent Decrees. While studios were allowed to own individual theater locations, such as Disney owning the El Capitan Theatre and Netflix owning The Egyptian Theatre and New York's Paris Theater, the Department of Justice did not allow ownership of a chain of cinemas.

In 2020, the decrees were abolished. Now, four years later, Sony is the first to invest in a theatrical company.

Michael Kustermann, CEO of Alamo Drafthouse, will continue to lead the dine-in movie theater chain and report to Ravi Ahuja, president and CEO of Sony Pictures Experiences.

Alamo Drafthouse will continue to operate the company's 35 cinemas and its headquarters will remain in Austin, Texas.

Ahuja stated that the Alamo Drafthouse team is excited to build on the success of its innovations and will continue to welcome content from all studios and distributors.

In 2021, Alamo Drafthouse filed for Chapter 11 bankruptcy due to Covid disruptions, but was later rescued by a private equity firm. However, just last week, five North Texas locations closed after a franchisee filed for bankruptcy.

"Kustermann stated, "We are thrilled to collaborate with Sony Pictures Entertainment and have discovered the ideal location and partner for Alamo Drafthouse Cinema. As film enthusiasts, we were created for film enthusiasts. We understand the significance of this partnership to Sony and it underscores their dedication to the cinematic experience. We will continue to innovate and provide new opportunities for our team and customers.""