Sony Pictures Acquires Alamo Drafthouse Cinema In Historic Deal!

[Eternal_Wings]

Sony Pictures is getting into the movie theater business, as it has acquired Alamo Drafthouse and its 35 dine-in cinemas.
As part of the sale, Alamo Drafthouse will continue to operate all of its existing locations as well as the annual Fantastic Fest genre film festival in Austin. Michael Kustermann will remain CEO of the company and will report to Sony Pictures president/COO Ravi Ahuja.


“We believe strongly in engaging entertainment fans outside the home in fun and distinctive ways as seen most recently with our ‘Wheel of Fortune LIVE!’ traveling tour, and the opening of Wonderverse in Chicago,” Ahuja said in a Wednesday statement. “Alamo Drafthouse’s differentiated movie-going experience, admired brand and devoted community fit well with this vision. Our Crunchyroll business also aligns well with their audience’s interests. We look forward to building upon the innovations that have made Alamo Drafthouse successful and will, of course, continue to welcome content from all studios and distributors.”
“We are excited to make history with Sony Pictures Entertainment and have found the right home and partner for Alamo Drafthouse Cinema,” Kustermann added. “We were created by film lovers for film lovers. We know how important this is to Sony and it serves as further evidence of their commitment to the theatrical experience. Together we will continue to innovate and bring exciting new opportunities for our teammates and moviegoers alike.”
The new ownership comes after a turbulent four years for Alamo Drafthouse after the economic upheaval inflicted on the movie theater industry by the COVID-19 pandemic in 2020. In March 2021, as theaters began to reopen after a year of being closed, Alamo announced that it was filing for bankruptcy and had been purchased by Altamont Capital Partners and Fortress Investment Group, from whom Sony has acquired the chain alongside its founder, Tim League.




Sony Pictures CEO Tom Rothman characterized the acquisition as a sign of his studio’s dedication to the theatrical experience, saying, “Alamo Drafthouse has always held the craft of filmmaking and the theatrical experience in high esteem, which are fundamental shared values between our companies. I’m jazzed that our company is doing this.”
“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,” League agreed. “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.”
Goldman Sachs & Co. LLC acted as exclusive financial advisor to Alamo Drafthouse in the transaction.

TheWrap

 

[Eternal_Wings]

@Bryank75 @Darth Vader @Sircaw
Thoughts to this surprising acquisition?
But what I don't understand why are thry acquiring a theatre chain? It's a dying sector.

 

[Nhomnhom]

Wtf...

 

[Dabaus]

@Bryank75 @Darth Vader @Sircaw
Thoughts to this surprising acquisition?
But what I don't understand why are thry acquiring a theatre chain? It's a dying sector.

I feel like acquiring movie chains might be plan B if they cant outright acquire a movie publisher. Sort of like how playstation is the hardware to play games on, maybe sonys strategy is now own the theater to watch the movies on? I would also say this would probably further complicate the Paramount deal too?

 

[Eternal_Wings]

I feel like acquiring movie chains might be plan B if they cant outright acquire a movie publisher. Sort of like how playstation is the hardware to play games on, maybe sonys strategy is now own the theater to watch the movies on? I would also say this would probably further complicate the Paramount deal too?

There is literally zero chance for Sony too go after Paramount. They have realised it's not worth it to buy them, especially not in their current state. Their shareholders were against it and were relieved after the reports surfaced, that Sony is withdrawing from bidding. Their stock rose after that.

 

[mibu no ookami]

I feel like acquiring movie chains might be plan B if they cant outright acquire a movie publisher. Sort of like how playstation is the hardware to play games on, maybe sonys strategy is now own the theater to watch the movies on? I would also say this would probably further complicate the Paramount deal too?

Sony could do a subscription plan like AMC A-List that allows you to see a certain number of movies per week for a set fee. They could bundle that into other subscription plans similar to how Amazon does with Prime.

It's possible that they'll use the Alamo studios as a test bed for that subscription or that they'll use them to sell really cheap tickets to see if that drastically improves ticket buyers as an example to the rest of the industry.

They only have 35 locations. It's not really a major chain. Though it would be interested to see if this is an opening salvo and whether they buy a large chain in the future.

 

[mibu no ookami]

There is literally zero chance for Sony too go after Paramount. They have realised it's not worth it to buy them, especially not in their current state. Their shareholders were against it and were relieved after the reports surfaced, that Sony is withdrawing from bidding. Their stock rose after that.

This is fiction. Sony has not withdrawn and have been in discussions as recently as this weekend. They're still doing their due diligence.

If anything this may be a move that Sony is looking to buy National Amusements outright.

 

[Eternal_Wings]

This is fiction. Sony has not withdrawn and have been in discussions as recently as this weekend. They're still doing their due diligence.

If anything this may be a move that Sony is looking to buy National Amusements outright.

It's not fiction. Rethinking is just another term to word a withdrawal.

Paramount shares fall after CNBC reports Sony rethinking its bid

"People close to the situation that I've been speaking to of late indicate that the likelihood of a bid, at least for the full company, seems to be fading a bit," CNBC's David Faber said. Sony and Paramount did not immediately respond to Reuters requests for comment. Reuters reported last week...

de.finance.yahoo.com

Anyway this merger is not happening. If Paramount gets bought then the purchaser will be definitely not Sony.

 

[mibu no ookami]

It's not fiction. Rethinking is just another term to word a withdrawal.

Paramount shares fall after CNBC reports Sony rethinking its bid

"People close to the situation that I've been speaking to of late indicate that the likelihood of a bid, at least for the full company, seems to be fading a bit," CNBC's David Faber said. Sony and Paramount did not immediately respond to Reuters requests for comment. Reuters reported last week...

de.finance.yahoo.com

Anyway this merger is not happening. If Paramount gets bought then the purchaser will be definitely not Sony.

Again, it is fiction. What was said to be reconsidered was the scope of the offer not that they were no longer interested. The rethinking happened BEFORE the NDA.

They were in talks as recently as this weekend.

You don't want Sony to buy them so you've convinced yourself it won't happen. It could very well happen.

 

[Bryank75]

Interesting move.

I think Sony Pictures are positioning themselves to be everything except streaming...

They seem to want to make their movies, make various deals to put their content on other services, produce and distribute physical versions of films (now with Disney content too) and now move into the cinema ownership arena...

They won't have to pay themselves to show their movies in their cinemas and may be able to make better deals with other movie companies...

The only issue I have is that it's so US focused.

 

[xollowsob]

Knowing Sony, Steam users will get a 50% saving on ticket prices.

 

[mibu no ookami]

Interesting move.

I think Sony Pictures are positioning themselves to be everything except streaming...

They seem to want to make their movies, make various deals to put their content on other services, produce and distribute physical versions of films (now with Disney content too) and now move into the cinema ownership arena...

They won't have to pay themselves to show their movies in their cinemas and may be able to make better deals with other movie companies...

The only issue I have is that it's so US focused.

I can't imagine they don't have long term plans for streaming. It just seems like such an obvious blindspot. I can only imagine they feel there will be further consolidation in the industry and that this just isn't the time to get into streaming and that they can amass a fortune being an arms dealer, even more so with Paramount's IP and catalog.

The question is whether they'll be allowed to buy someone who has a streamer in the future if they do in fact get Paramount. I can't imagine they'd be able to or allowed to.

It could also be that they're positioning a future sale of Sony Pictures to Disney, or maybe someone else without given they'd have some diversity in portfolio to withstand losing Spider-Man in the sale.

Sony used to own theaters before when it was legal, now that it is legal again, they're getting back into the game. Sony has spoken recently on how ticket prices are too high and are what's preventing a cleaner rebound of movie goers. So maybe Sony is trying to put downward pressure on prices. They're definitely pricing themselves out.

One thing I would say again is that this is only 35-40 theaters across the country. It doesn't really move the needle at all, but we'll see if they invest in other chains and internationally.

 

[Nhomnhom]

Best thing Sony ever did was giving up early on the streaming wars, it would be moronic to see any value in Paramount+, easily the worst streaming service out there from the big studios.

 

[Bryank75]

I can't imagine they don't have long term plans for streaming. It just seems like such an obvious blindspot. I can only imagine they feel there will be further consolidation in the industry and that this just isn't the time to get into streaming and that they can amass a fortune being an arms dealer, even more so with Paramount's IP and catalog.

The question is whether they'll be allowed to buy someone who has a streamer in the future if they do in fact get Paramount. I can't imagine they'd be able to or allowed to.

It could also be that they're positioning a future sale of Sony Pictures to Disney, or maybe someone else without given they'd have some diversity in portfolio to withstand losing Spider-Man in the sale.

Sony used to own theaters before when it was legal, now that it is legal again, they're getting back into the game. Sony has spoken recently on how ticket prices are too high and are what's preventing a cleaner rebound of movie goers. So maybe Sony is trying to put downward pressure on prices. They're definitely pricing themselves out.

One thing I would say again is that this is only 35-40 theaters across the country. It doesn't really move the needle at all, but we'll see if they invest in other chains and internationally.

They'll never sell and Disney wouldn't be allowed buy them or most other large movie companies anymore.

I think they are happy to allow the others fight for the pretty meager profits in streaming, while doing quite well with their tiered approach to licensing, cinema, retail etc.

Even if they bought Paramount, I think they don't really want the streaming business, from what I heard. The huge catalog of classic movies is the gold there and licensing them out and selling them forever into the future. Especially now, that hollywood is so creatively bankrupt for the most part.

 

[Eternal_Wings]

They'll never sell and Disney wouldn't be allowed buy them or most other large movie companies anymore.

I think they are happy to allow the others fight for the pretty meager profits in streaming, while doing quite well with their tiered approach to licensing, cinema, retail etc.

Even if they bought Paramount, I think they don't really want the streaming business, from what I heard. The huge catalog of classic movies is the gold there and licensing them out and selling them forever into the future. Especially now, that hollywood is so creatively bankrupt for the most part.

Do you think Sony could sell parts of ther Sony Pictures division? Of course not all but some.

 

[Bryank75]

Do you think Sony could sell parts of ther Sony Pictures division? Of course not all but some.

I don't think they will, more likely they would add to it than anything. Unless there is some smaller unit that isn't going to fit into the vision they have for the future.

I think they are very keen to buy IP's and content to license though.

 

[mibu no ookami]

They'll never sell and Disney wouldn't be allowed buy them or most other large movie companies anymore.

I think they are happy to allow the others fight for the pretty meager profits in streaming, while doing quite well with their tiered approach to licensing, cinema, retail etc.

Even if they bought Paramount, I think they don't really want the streaming business, from what I heard. The huge catalog of classic movies is the gold there and licensing them out and selling them forever into the future. Especially now, that hollywood is so creatively bankrupt for the most part.

Consolidation is coming in the media industry. The idea that they'd never sell is presumptuous. They're really too small to compete as is. Their only choices are to grow significantly or sell and people are overestimating the regulatory hurdles for additional consolidation.

Streaming isn't extremely profitable if your name isn't Netflix right now, but in 10-15+ years, it's going to be the only way you can really make money in a post-cutting the cord way. Linear media is going to be dead. Not having a streamer of your own is going to be like not having a cable company in the past or like not having an operating system on phones or computers.

It's clear that they don't want streaming right now, but hard to believe they won't play some part in that in the future. They'll simply get priced out.

Also the continued narrative that Hollywood is creatively bankrupt has been a rolling theme for decades...

 

[mibu no ookami]

Do you think Sony could sell parts of ther Sony Pictures division? Of course not all but some.

It's been discussed in the past if Sony might need to sell Sony Pictures.

Spider-Man is a poison pill though. If Sony sells Sony Pictures, Sony Pictures loses the rights to Spider-Man in the process. They'll revert back to Marvel, hence Disney. Which means that the only company who could buy Sony Pictures for full value would be Disney. It's just not worth much to anyone else without Spider-Man.

The only way Sony could sell Sony Pictures to someone else is if they sold the rights to Spider-Man back to marvel beforehand.

 

[Eternal_Wings]

It's been discussed in the past if Sony might need to sell Sony Pictures.

Spider-Man is a poison pill though. If Sony sells Sony Pictures, Sony Pictures loses the rights to Spider-Man in the process. They'll revert back to Marvel, hence Disney. Which means that the only company who could buy Sony Pictures for full value would be Disney. It's just not worth much to anyone else without Spider-Man.

The only way Sony could sell Sony Pictures to someone else is if they sold the rights to Spider-Man back to marvel beforehand.

I think Sony selling Spider-Man to Disney back, they would require a compensation for it. Like selling the Kingdom Hearts IP to Sony in return. Sony actually invested a lot in this KH. Just a thought.

 

[mibu no ookami]

I think Sony selling Spider-Man to Disney back, they would require a compensation for it. Like selling the Kingdom Hearts IP to Sony in return. Sony actually invested a lot in this KH. Just a thought.

Really not how this works. The compensation is money... and maybe they would work out a deal where they maintain a royalty for life.

Kingdom Hearts is entirely dependent on IP from Disney and Square... you really couldn't sell it if you wanted to without allowing for continued use of Disney characters past, present, and future.

For some reason people seem to think business works tick for tack. Xbox is putting games on PS5, so Sony must put games on Xbox... real life isn't like that.

Regardless, the only reason Sony would sell Spider-Man is if they were selling Sony Pictures to another company.