Chicken Soup for Soul Entertainment has struck a deal to acquire Redbox, which has more than 30,000 video rental kiosks in the US, for $375 million. The deal will be an all-stock transaction, adding Redbox to Chicken Soup for the Soul’s video portfolio, which already includes ad-supported video streaming platform Crackle+. Given that the company has as many Redbox kiosks as the Blockbuster video store at its peak, it goes without saying that this acquisition immediately makes Chicken Soup for the Soul one of the biggest players in the home entertainment space. There are also 40 million Redbox Perk users – a subscription service that offers free one-night rentals and other services.
To media play news, a leading news source in the home video space, they will grow the combined company into content production and distribution with a large content library, extensive digital capabilities in on-demand and free ad-supported video. Best known for Chicken Soup for the Soul Motivational Books, the company was founded in 1993 but has taken its roots not only in entertainment, but also in industries such as food and pet food.
Chicken Soup for the Soul Entertainment President and CEO William J. “Today is a transformative moment for Chicken Soup for Soul Entertainment and a turning point for the ad-supported streaming industry,” Rouhana Jr. said in a statement. “Our acquisition of Redbox will accelerate the expansion of our business as it combines complementary teams and services to create the streaming industry’s leading independent AVOD.”
“We believe Chicken Soup for Soul Entertainment is the ideal partner for Redbox. By joining forces, we will accelerate Redbox’s transition from a physical to high-growth digital media company and one-of-a-kind entertainment focused on value to consumers. provider.” Redbox CEO Galen Smith. “This deal provides Redbox stockholders an opportunity to participate in the significant near- and long-term upside potential of a diversified and growing company with greater scale and resources.”
Big-ticket Redbox stockholders, who control about 85% of the company’s stock, have voted to go ahead with the deal. The deal is expected to close in the second half of 2022, subject to regulatory approval and the deal being formally finalised. Following the termination of the transaction, Chicken Soup for Soul Entertainment stockholders will own approximately 76.5% of the combined company, and Redbox stockholders will own approximately 23.5% of the combined company, trading under Chicken Soup for Soul’s current ticker. Will continue to do Designation of CSSE.
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Reference from comicbook.com