Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema for an estimated $200 million.

The headquarters of Alamo Drafthouse will remain in Austin, TX, under a new division called Sony Pictures Experiences.

This acquisition signals Sony's return to vertical integration in Hollywood after the DOJ lifted its ban on studios controlling film exhibition.

Despite recent challenges, including the closure of five theaters in North Texas, the partnership is seen as a positive step forward for Alamo Drafthouse.

Alamo Drafthouse is renowned for its strict no talking or texting policy during movies and offers food and drink service during films.

CEO Michael Kustermann will continue to lead Alamo Drafthouse, ensuring the preservation of its unique movie and dining experience and the annual 'Fantastic Fest' genre film festival.

The deal comes at a critical time for Alamo Drafthouse, which came out of bankruptcy in 2021 and saw a 30% increase in box office revenue in 2023.

Sony's commitment to showcasing films from all distributors and studios in its theaters is expected to provide new opportunities for moviegoers.

Alamo Drafthouse founder Tim League expressed excitement about the acquisition, highlighting shared values and vision with Sony Pictures.