Topline
Sony Pictures announced Wednesday it purchased dine-in movie theater chain Alamo Drafthouse for an undisclosed amount, more than three years after Alamo filed for bankruptcy during the thick of the COVID-19 pandemic, which crushed theatrical revenue and delayed scores of major movies.
Sony announced the purchase Wednesday afternoon. (Photo by AaronP/Bauer-Griffin/GC Images)
Timeline
The COVID-19 pandemic shutters theaters globally, forcing Alamo to close most of its then-41 locations, furlough about 80% of its theater employees and create a $2 million emergency fund for the furloughed staff members.
Alamo’s founder, Tim League, steps down as the chain’s CEO to transition to its executive chairman and is replaced by former Disney executive Shelli Taylor.
More than 80 corporate Alamo employees are laid off, a figure that did not include projectionists, event managers, or local theater managers, according to IndieWire.
Alamo announces its plans to file for Chapter 11 bankruptcy as it fails to service around $105 million in debt, according to Variety, allowing it to secure rent concessions and shed lower-performing locations.
The theater chain emerges from bankruptcy with Altamont Capital, Fortress Investment Group and League as its new owners.
Former Alamo President Michael Kustermann replaces Taylor as CEO, around the same time the chain reports it is surpassing its 2019 sales amid a rush of moviegoers going to theaters to see “Barbie” and “Oppenheimer,” the former of which became 2023’s highest-grossing movie worldwide.
Alamo explores a sale of the company and approaches multiple Hollywood studios about a potential acquisition, Variety reported.
Sony Pictures buys Alamo, marking the first time in 75 years a major studio has owned a movie theater chain, according to The Hollywood Reporter.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Big Number
More than 10 million. That is how many moviegoers Alamo attracts a year, establishing it as the seventh-largest theater chain in North America.
Key Background
Alamo has been in business for nearly 30 years and has become known for its dine-in food service and expansive programming. The company will continue to be headquartered in Austin, Texas, following its purchase at the hands of Sony. The sale marks a unique instance of studio-based movie theater ownership. The Paramount Consent Decrees, which barred movie distributors from owning exhibition companies like Alamo or AMC, were repealed in 2020. Sony is the first large studio to purchase an exhibitor since the decree was repealed. Streaming giant Netflix has done something similar, though not at the same scale, buying New York’s Paris Theater and Los Angeles’ Egyptian Theatre and 2019 and 2020, respectively.
Further Reading
Sony Pictures Acquires Alamo Drafthouse Cinema in Landmark Deal That Puts Studios Back in Theater Game (The Hollywood Reporter)
Sony Pictures Buys Alamo Drafthouse (Variety)
