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Sony Pictures Acquires Alamo Drafthouse Cinema for $200 Million

Sony and Alamo drafthouse

Sony Pictures Entertainment (SPE) has acquired Alamo Drafthouse Cinema for $200 million, taking ownership from Altamont Capital Partners, Fortress Investment Group, and founder Tim League. The acquisition marks SPE’s return to the exhibition business, having previously owned the Loews Theater chain in the 1990s.

The new Alamo Drafthouse Cinema will operate under SPE’s newly established division, Sony Pictures Experiences. Michael Kustermann will continue as CEO of Alamo Drafthouse and head the new division, reporting to Ravi Ahuja, President and COO of SPE.

Thirty-five Alamo Drafthouse cinemas across 25 metro areas will continue under the Alamo brand. The acquisition includes the Fantastic Fest, which will remain under the chain’s management. The company’s headquarters will stay in Austin, Texas.

Ahuja highlighted the strategic value of this acquisition, noting the synergy between Alamo Drafthouse’s unique movie-going experience and Sony’s entertainment initiatives. He emphasized that Alamo Drafthouse’s appeal to the under-25, hip crowd aligns well with Sony’s marketing strategies.

Tim League expressed enthusiasm about the partnership, emphasizing Sony’s respect for cinema and its potential for cultural impact. Tom Rothman, Chairman and CEO of Sony Pictures Motion Picture Group, echoed this sentiment, praising Alamo Drafthouse’s dedication to filmmaking and the theatrical experience.

Goldman Sachs & Co. LLC served as the exclusive financial advisor to Alamo Drafthouse in the transaction.

This acquisition comes amid broader industry movements, with Paramount Global recently ending merger talks with Skydance. Sony’s interest in Paramount remains complicated by regulatory challenges and the current administration’s stance on mergers.