Chicken Soup Acquires Red Box For Soul Entertainment

Redbox, a struggling DVD rental kiosk operator and video streamer, is now part of Seoul Entertainment’s Chicken Soup.

Chicken Soup for the Soul Entertainment announced Thursday that it has completed its acquisition of Redbox Entertainment in an all-stock transaction valued at approximately $375 million, after announcing the deal in May.

The deal ends Redbox’s brief retaliation as a public company. In October 2021, Redbox went public after merging with a special purpose acquisition company (SPAC). However, Redbox laid off his 150 employees, about 10% of its workforce, earlier this year as the company reported a steep decline in business and mounting losses. Redbox’s parent company, Outerwall, was taken private by Apollo Global Management in 2016 before going public last year.

Redbox brings to CSSE a network of approximately 36,000 kiosks in the United States, a customer loyalty program with over 40 million members, ad-supported and transactional VOD services. Combined, CSSE and Redbox currently have over 145 free ad-supported streaming TV (FAST) channels.

Chicken Soup for the Soul Entertainment, whose parent company owns the rights to the eponymous book series, owns and operates AVOD streaming services such as Crackle (acquired from Sony Pictures Television), Popcornflix and Chicken Soup for the Soul. The company also acquires and distributes video content through its subsidiaries Screen Media and his 1091 Pictures, and produces original video content through Soul Television Group’s Chicken Soup.

The company expects the Redbox acquisition to more than triple its revenue, to about $500 million annually.

“We’ve been looking forward to the day Redbox became part of the Soul Entertainment family of Chicken Soup, and today is that day,” said Bill Rouhana Jr., Chairman and CEO of Soul Entertainment’s Chicken Soup. statement.

Chicken Soup for the Soul Entertainment expects the combined company to generate more than $500 million in revenue in 2022 and $100 million to $150 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). ) is expected to be achieved. CSSE says in 2023 he expects annual run-rate cost synergies of over $40 million.

As previously announced, Chicken Soup for the Soul Entertainment shareholders will own approximately 76.5% of the combined company and Red Box shareholders will own approximately 23.5% of the combined company on a fully diluted basis. It will be.

Upon closing the deal with Redbox, CSSE appointed former Redbox CEO Galen Smith as vice chairman of Redbox and Chicken Soup for the Soul Entertainment. Smith will oversee the company’s growth plans, including strategic acquisitions. Additionally, Jonathan Katz has been named president of Soul Entertainment’s Chicken Soup. Katz previously held senior management positions at Scripps Networks, Katz Networks and Turner Broadcasting. In his new role, he will oversee the company’s operations, including streaming he services, Redbox kiosks, and original content he studios. Smith and Katz report to his Rouhana.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *