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- Jun 13, 2024 - 03:05
Sony Pictures acquires Alamo Drafthouse Cinema for $200 million in ¡Que Onda Magazine!
Sony Pictures Entertainment acquires Alamo Drafthouse Cinema for $200 million, marking its return to the exhibition business and creating Sony Pictures Experiences.
Sony Pictures Entertainment (SPE) has made a significant move in the entertainment industry by acquiring Alamo Drafthouse Cinema for a whopping $200 million. This acquisition marks SPE's reentry into the exhibition business after previously owning the Loews Theater chain in the 1990s.
Under the umbrella of SPE's newly established division, Sony Pictures Experiences, Alamo Drafthouse Cinema will continue to operate with Michael Kustermann at the helm as CEO. Kustermann will report to Ravi Ahuja, the President and COO of SPE.
The acquisition includes maintaining the Alamo brand for the thirty-five cinemas across 25 metro areas, as well as keeping the popular Fantastic Fest under the chain's management. The headquarters will remain in Austin, Texas.
Ahuja emphasized the strategic value of this acquisition, highlighting the synergy between Alamo Drafthouse's unique movie-going experience and Sony's entertainment initiatives. He pointed out that Alamo Drafthouse's appeal to the under-25, hip crowd aligns well with Sony's marketing strategies.
Tim League, the founder of Alamo Drafthouse, expressed excitement about the partnership, noting Sony's deep 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 commitment to filmmaking and the theatrical experience.
Goldman Sachs & Co. LLC played a key role as the exclusive financial advisor to Alamo Drafthouse in this transaction.
This acquisition comes at a time of significant movement in the entertainment industry, with Paramount Global recently halting merger talks with Skydance. Sony's interest in Paramount remains complex due to regulatory challenges and the current administration's stance on mergers.
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