Chicken Soup For The Soul Acquires Redbox Entertainment - Chicken Soup for the Soul (NASDAQ:CSSE)

Chicken Soup For The Soul Entertainment Inc CSSE has agreed to acquire entertainment company Redbox Entertainment Inc RDBX. The acquisition is expected to create an independent, integrated direct-to-consumer media platform delivering premium entertainment.
Redbox stockholders will receive a fixed exchange ratio of 0.087 of a share of Class A common stock of CSSE.
"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.
Chicken Soup for the Soul Entertainment stockholders will own about 76.5% of the combined company, and Redbox stockholders will own about 23.5%.
The combined company will have a vast content library spanning 38,000 kiosks nationwide, extensive digital capabilities, and access to millions of targeted customers, including nearly 40 million Redbox Perks members.
CSSE expects the combined company to exit 2022 with a run-rate exceeding $500 million of revenue and $100 million - $150 million of Adjusted EBITDA.
The transaction is expected to close in the second half of 2022.
CSSE held $21.5 million in cash and equivalents as of March 31, 2022.
Upon closing, the combined entity will retain the name Chicken Soup for the Soul Entertainment and continue to trade under the ticker symbol "CSSE."
Price Action: CSSE shares are trading higher by 11.7% at $8.85, while RDBX is down 51.8% at $2.70 in premarket on Wednesday.
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