Sony is back in the theater-ownership business for the first time since the 1990s.

Sony Pictures Entertainment announced Wednesday that Sony had acquired the Alamo Drafthouse Cinema chain from current owners Altamont Capital Partners for an undisclosed amount.

No big changes have been announced to go with the new ownership: Alamo Drafthouse’s Michael Kustermann will remain CEO of the chain and all 35 of the chain’s cinemas, located in 25 metro areas, will remain in operation under the Alamo Drafthouse brand.

Alamo will continue to run their Fantastic Fest, which was part of the overall deal, and will still be headquartered in Austin, Texas.

Alamo Drafthouse, founded in 1997, is North America’s seventh largest theater chain and is said to release more movies per year than any other theater chain. The chain has over 10 million guests annually, with a loyalty member base of 4 million. 

The chain, like many others, was adversely affected by the theater shutdowns that came with the pandemic, and struggled to recover once they were able to operate like normal again. In 2021 Alamo filed for bankruptcy, re-emerging four months later from the reorganization process, a move that led to the closure of some of their theaters.

For many years, Hollywood studios could not run movie theaters following a landmark antitrust Supreme Court case in 1948 that outlawed practices like “block booking,” where studios would require theaters to book a bundle of their films, edging out competition from smaller studios.

It’s rare now for a studio to own a theater chain, something that was made easier after the Paramount Decree was allowed to sunset in 2020. Sony took advantage of federal regulations loosening in the 1990s, when they owned and operated the Loews Theatre chain, which is now part of AMC.

While other studios have thrown all they have behind operating a dedicated streaming service, Sony has demonstrated more of an interest in promoting in-person experiences, such as Wonderverse, an immersive entertainment space located in Chicago, and a Wheel of Fortune LIVE! traveling tour.