Sony Pictures Entertainment has made a significant move in the entertainment industry by acquiring the popular Texas-based movie theater chain, Alamo Drafthouse Cinema. This acquisition marks a historic moment as it is the first time in 75 years that a major Hollywood studio has taken ownership of a movie theater company.

Under the management of Sony’s newly-formed Sony Pictures Experiences division, Alamo Drafthouse will continue its operations with Michael Kustermann retaining his position as CEO and reporting to Sony Pictures COO Ravi Ahuja. The chain, known for its dine-in service, will remain headquartered in Austin, Texas, and manage its 35 locations, including the ownership of the renowned Film Festival Fantastic Fest.

Financial details of the acquisition were not disclosed, but the move comes at a crucial time for the industry as the summer box office has seen a decline of 28% year-to-date. With the ongoing challenges faced by traditional theaters, studios are exploring innovative ways to attract audiences back to cinemas.

Alamo Drafthouse had previously filed for Chapter 11 bankruptcy in 2021 due to the impact of the Covid-19 pandemic on movie theater operations. However, the chain was later acquired out of bankruptcy by Altamont Capital Partners, Fortress Investment Group, and original co-founder Tim League. This recent acquisition by Sony signifies a new chapter for Alamo Drafthouse and the potential for growth and revitalization in the movie theater industry.