Chicken Soup for the Soul Entertainment to Acquire Redbox

Chicken Soup for the Soul Entertainment (CSSE) has entered into an agreement to acquire Redbox, bolstering its digital capabilities in AVOD, TVOD, PVOD and FAST.

Redbox operates a digital streaming service that provides both AVOD and paid movies from Hollywood studios and hundreds of content partners, as well as over 130 channels of free ad-supported streaming television (FAST). The Redbox app is available on major entertainment platforms that include Roku devices, connected TVs, gaming platforms, the web as well iOS and Android devices.

Chicken Soup for the Soul Entertainment operates streaming VOD networks. It owns Crackle Plus, which has a variety of ad-supported and subscription-based VOD networks, including Crackle, Chicken Soup for the Soul, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix.

Together, the combined companies will have “the industry’s premier, independent AVOD platforms.” The transaction is an all-stock combination where Chicken Soup for the Soul Entertainment shareholders will own 76.5 percent and Redbox shareholders 23.5 percent of the combined company

“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. “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.”

“We believe that Chicken Soup for the Soul Entertainment is the ideal partner for Redbox,” said Galen Smith, CEO of 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. 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.”

Rouhana continued, “More and more viewers are embracing ad-supported streaming offerings in a content environment characterized by cord-cutting and saturation of high-priced subscription services. Near-term, these conditions are even more acute against a macro backdrop of rising inflation and economic uncertainty. With the combination of a large content library, digital AVOD and FAST channel capabilities, and an expanding global audience, we believe that we will be able to deliver more exciting premium entertainment for millions of value-conscious viewers and drive further growth and value creation for our stockholders.”