A major movie studio is buying a chain of theaters that was founded in Texas. Sony Pictures Entertainment is acquiring Alamo Drafthouse Cinema. The two companies did not disclose the financial terms of the deal.
The Alamo Drafthouse started with one theater in Austin in the late 1990's. It offers a mix of first-run movies and classic films along with food service and alcoholic beverages. It has locations across Texas and several other states including California, New York and Virginia.
The announcement today from Sony Pictures Entertainment states that "Alamo Drafthouse will continue to operate all 35 of its cinemas".
Five locations operated by a separate company under a franchise agreement in the Dallas-Fort Worth area closed earlier this month when that franchisee, Two is One, One is None LLC, filed for bankruptcy. Sony Pictures Entertainment did not address any plans for those locations.
The corporate headquarters for the Alamo Drafthouse will remain in Austin, and the theater chain will keep its name.
"We are beyond thrilled to join forces with Sony Pictures Entertainment to expand our company vision to be the best damn cinema that has ever, or will ever, exist now in ways we could only ever dream of," said Alamo Drafthouse founder Tim League.
"They have a deep respect and understanding of cinema's ability to both drive growth and create lasting cultural impact which aligns perfectly with everything Alamo Drafthouse stands for."
For decades, movie studios like Sony Pictures Entertainment were blocked from owning theater chains. That regulation was relaxed in 2020. Netflix owns several theaters. Disney and Amazon both own theaters in the Los Angeles area.
The deal between Sony and the Alamo Drafthouse is the first large-scale deal for a studio to purchase a theater chain since 2020.
Sony Pictures Entertainment is responsible for several big-budget films including "Ghostbusters: Frozen Empire", "The Garfield Movie" and "Bad Boys: Ride or Die".
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