Redbox, known for its DVD kiosks and on-demand streaming service, is set to be acquired by Chicken Soup for the Soul Entertainment, the companies announced in a joint statement on Wednesday.
The all-stock deal is worth $375 million, which includes the assumption of $325 million in Redbox debt and $50 million in stock from Chicken Soup for the Soul Entertainment. While the brand is typically associated with self-help books, Chicken Soup for the Soul also owns several TV streaming services, including Crackle and Popcornflix.
Rather than target viewers with a higher priced subscription service, the new venture is meant to focus on expanding an ad-supported video streaming option for customers at a low cost — or free. According to the press release, Redbox has 40 million Perks members and owns 38,000 kiosks nationwide, and the deal will enable them to increase their combined customer base while delivering entertainment.
“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 Redbox CEO Galen Smith.
More to come.