Redbox, the DVD-focused entertainment company, is looking to acquire new owners.
The company, known for its red kiosks that rent DVDs of movies and TV series, has agreed to buy Chicken Soup for Soul Entertainment, which owns the Crackle streaming service, among other properties (including, yes, Chicken Soup for the Soul book series).
The combined $375 million shares include Redbox’s $325 million debt and $50 million access to Chicken Soup for the Soul.
While there is no indication that DVD stands will be shutting down anytime soon, in a statement announcing the deal, Chicken Soup for the Soul indicated that the deal was actually to expand its presence by supporting free advertising on streaming video.
“Our acquisition of Redbox will accelerate the growth of our business as it brings together additional equipment and services to create the industry-leading standalone AVOD in the streaming industry,” said William J. Rouhana Jr., President and CEO of Chicken Soup for the Soul. Training. demonstration. “Redbox has 40 million users in the loyalty program and high-potential digital TV assets, including the transfer of over 130 FAST digital channels to its free live TV platform, as well as the powerful TVOD and PVOD platform. Together, we will build the complete AVOD and FAST broadcast business: proven branded broadcasting services, excellent content and production capabilities, and strong AVOD and FAST advertising sales operations.
Redbox has had problems in recent months. While the company’s share price has soared in recent weeks amid interest from retailers since it received new financing, it has remained in a volatile financial situation and has slashed its workforce by about 10% in the past month.
Meanwhile, Chicken Soup for the Soul has revamped streaming via Crackle (which it acquired from Sony in 2019) and PopcornFlix. There’s now a gamble that Redbox’s new streaming offering, along with its loyalty program and, yes, DVD kiosks, can propel it into a streaming market saturated with growing paid offerings.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
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