Chicken Soup for the Soul Entertainment agrees to acquire Redbox in all-stock deal

Redbox rental location

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  • Chicken Soup for the Soul Entertainment (NASDAQ:CSSE) has agreed to acquire video rental company Redbox (NASDAQ:RDBX) in an all-stock transaction.
  • The deal has been cleared by the boards of directors of both companies and is expected to close in the second half of 2022. Pursuant to the deal, Redbox stockholders will receive a fixed exchange ratio of 0.087 of a share of CSSE class A common stock per Redbox share.
  • Upon completion of the transaction, CSSE stockholders will own ~76.5% of the combined company, with Redbox stockholders owning ~23.5% on a fully diluted basis.
  • The combination creates an independent, integrated direct-to-consumer media platform, with over 38,000 kiosks nationwide, a massive content library, increased scale across content production and distribution and extensive digital capabilities in AVOD, TVOD, PVOD, and FAST.
  • Chicken Soup (CSSE) expects the combination to be accretive to adj. EBITDA in 2023 and deliver annual-run rate cost synergies of $40M+ in 2023. The combined company will exit 2022 with a run-rate exceeding $500M of revenue and $100 - $150M of adj. EBITDA.
  • In other news, Chicken Soup Entertainment reported mixed Q1 results today

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