Sony Pictures Entertainment (SPE) has acquired Alamo Drafthouse Cinema, one of the fastest-growing theatrical exhibitors, reinforcing its commitment to the theatrical experience and experiential entertainment. The unique cinema chain will now operate under the newly created Sony Pictures Experiences division.
Michael Kustermann, CEO of Alamo Drafthouse, will continue in his role and head the new division, reporting to Ravi Ahuja, President and COO of SPE. The acquisition includes all 35 Alamo Drafthouse locations and the renowned Fantastic Fest film festival. The company’s headquarters will remain in Austin, Texas.
Alamo Drafthouse, known for its distinctive dine-in movie experience, was founded in 1997 by Tim and Karrie League. It has grown to become North America’s 7th largest theater chain, welcoming over 10 million guests annually and boasting 4 million loyalty members. Last year, the chain saw a 30% increase in box office revenue, outperforming the broader industry.
The acquisition from Altamont Capital Partners, Fortress Investment Group, and founder Tim League aligns with SPE’s strategy to enhance its entertainment offerings. Goldman Sachs & Co. LLC served as the exclusive financial advisor for the transaction.
“We are thrilled to join Sony Pictures and expand our vision,” said Tim League. “Their respect for cinema and commitment to growth aligns perfectly with our values.”
Sony’s Ahuja highlighted the synergies between Alamo Drafthouse and Sony’s initiatives like Crunchyroll and Wonderverse, emphasizing the potential to innovate and enhance the cinematic experience.
