Redbox, identified for its DVD kiosks and on-demand streaming service, is ready to be acquired by Chicken Soup for the Soul Entertainment, the businesses introduced in a joint assertion on Wednesday.
The all-stock deal is price $375 million, which incorporates the belief of $325 million in Redbox debt and $50 million in inventory from Chicken Soup for the Soul Entertainment. While the model is usually related to self-help books, Chicken Soup for the Soul additionally owns a number of TV streaming providers, together with Crackle, FrightPix and Popcornflix. In addition, the corporate creates and distributes video content material by way of its subsidiaries, 1091 Pictures and Screen Media.
Rather than goal viewers with a higher-priced subscription service much like Netflix or HBO Max, the brand new enterprise is supposed to give attention to increasing an ad-supported video streaming possibility for patrons at a low value, or at no cost. According to the press launch, Redbox has 40 million Perks members and owns 38,000 kiosks nationwide, and the deal will allow them to extend their mixed buyer base.
“By becoming a member of forces, we are going to speed up Redbox’s transition from a bodily to excessive development digital media firm and be the one leisure supplier really targeted on worth for customers,” mentioned Redbox CEO Galen Smith.
In early 2021, Redbox mentioned that it had misplaced $140 million in income, citing the pandemic and the dearth of latest theatrical releases as elements. In April 2022, the media model laid off 10% of its workforce, in keeping with a submitting with the Securities and Exchange Commission.
The new merger is anticipated to shut within the final half of 2022. Consumers will seemingly see titles from Screen Media streaming on Redbox together with movies, TV reveals and originals from different Chicken Soup for the Soul-owned properties, together with Sonar Entertainment.