Sony buys Alamo Drafthouse movie theater chain

Zoom in: Alamo Drafthouse will be managed by Sony's newly created Sony Pictures Experiences division.

• Michael Kustermann will remain CEO and report to Sony Pictures COO Ravi Ahuja.
• Alamo Drafthouse will remain headquartered in Austin, Texas and operate its 35 locations.
• Film Festival Fantastic Fest, which is owned by Alamo Drafthouse, is part of the deal.
• Financial terms were not disclosed.

The big picture: The summer box office has been weak, down 28% year-to-date, with studios looking for new ways to lure consumers to theaters.

Catch up quick: Alamo Drafthouse filed for Chapter 11 bankruptcy in 2021 amid the COVID-induced movie theater closings.

• It was bought out of bankruptcy later that year by Altamont Capital Partners, Fortress Investment Group and original co-founder Tim League.