Chicken Soup for the Soul Entertainment Is Acquiring Redbox

pcmag.com:

Chicken Soup for the Soul Entertainment is acquiring Redbox for $375 million.

The company says in a press release that "the combination of Chicken Soup for the Soul Entertainment and Redbox will create a leading independent, integrated direct-to-consumer media platform delivering premium entertainment for value conscious consumers."

That "value conscious" bit is important, because Chicken Soup for the Soul Entertainment is specifically targeting the "advertising-supported video-on-demand" segment of the streaming market, which probably isn't the first thing most people would associate with either company.

But it turns out that Chicken Soup for the Soul Entertainment has expanded beyond feel-good books under the eponymous series to a variety of streaming platforms, podcasts, and... pet food. And even though Redbox is mostly known for its kiosks, it does operate a streaming platform.

Redbox Free Live TV debuted in February 2020 as a streaming platform where people could watch a few dozen channels of ad-supported content without spending a dime—or even creating an account—so long as they weren't too picky with their media consumption habits.

Chicken Soup for the Soul Entertainment appears to be acquiring Redbox mostly for the brand recognition, however, thanks to the 38,000-plus kiosks the company operates. How exactly the combined entity will allow Redbox Free Live TV to excel isn't exactly clear.

The companies say the acquisition would include $50 million worth of Chicken Soup for the Soul Entertainment stock and the assumption of $325 million of Redbox's debt. The deal is expected to close in the second half of 2022.

Sign up for What's New Now to get our top stories delivered to your inbox every morning.

This newsletter