Chicken Soup for the Soul Entertainment plans to acquire entertainment company Redbox.
The deal was done with the goal of creating a leading independent, integrated direct-to-consumer media platform that delivers premium entertainment to budget-conscious consumers.
“Today marks a transformative moment for Chicken Soup for the Soul Entertainment and an inflection point for the ad-supported streaming industry,” said William J. Rouhana Jr., chairman and CEO of Chicken Soup for the Soul Entertainment, in a statement. “Our acquisition of Redbox will accelerate the scaling of our business as it combines complementary teams and services to create the streaming industry’s premier independent AVOD. Redbox has 40 million customers in its loyalty program and high-potential digital television assets, including carriage of over 130 FAST digital channels on its Free Live TV platform, as well as a robust TVOD and PVOD platform. Together, we will build a fully developed AVOD and FAST streaming business: proven branded streaming services, formidable content and production capabilities and a strong AVOD and FAST ad sales operation.”
With a massive content library; more than 38,000 kiosks nationwide; extensive digital capabilities in AVOD, TVOD, PVOD and FAST; and access to millions of targeted customers, including nearly 40 million Redbox Perks members, the combined company will have increased scale across content production and distribution.
“We believe that Chicken Soup for the 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 be the only entertainment provider truly focused on value for consumers,” said Galen Smith, CEO of Redbox. “This all-stock transaction provides Redbox stockholders with the opportunity to participate in the significant near- and long-term upside potential of a diversified and growing company with greater scale and resources. With our footprint of more than 38,000 kiosks, diverse content libraries and combined streaming platforms, we will be well-positioned to deliver consumers a wealth of high-quality entertainment options.”