Chicken Soup for the Soul Entertainment, Inc. (NYSE: CSSE) and Redbox Entertainment Inc. (NYSE: RDBX), a leading entertainment company, have entered into a definitive agreement under which Chicken Soup for the Soul Entertainment will acquire Redbox. Even on such positive announcement, CSSE and RDBX stocks plunged massively.
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. The combined company will have increased scale across content production and distribution, with a massive content library, more than 38,000 kiosks nationwide, extensive digital capabilities in AVOD, TVOD, PVOD, and FAST, and access to millions of targeted customers, including nearly 40 million Redbox Perks members.
Together, the combined companies will have the industry’s premier, independent AVOD platforms, one of the fastest growing segments of the overall entertainment industry. According to a recent study by IAB, ad spending on connected TV platforms increased 57% from 2020 to 2021 and is expected to increase another 39% this year.
CEO’s Statement
“Today marks a transformative moment for Chicken Soup for the Soul Entertainment and an inflection point for the ad-supported streaming industry. Our acquisition of Redbox will accelerate the scaling of our business as it combines complementary teams and services to create the streaming industry’s premier independent AVOD. Redbox has 40 million customers in its loyalty program and high-potential digital television assets including carriage of over 130 FAST digital channels on its Free Live TV platform, as well as a robust TVOD and PVOD platform. Together, we will build a fully developed AVOD and FAST streaming business: proven branded streaming services, formidable content and production capabilities, and a strong AVOD and FAST ad sales operation.”
said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment
CSSE stock
The CSSE stock was down by a huge 10.48% and traded at $7.09 (losing 0.83 points) at the time of writing in the market trading session today. The market capitalization of the stock stood at $113.2 million. The share volume traded for the CSSE stock was 1,167,644, substantially higher than the average share volume of 176,430.
RDBX stock
The RDBX stock was down by a massive 43.3% and traded at $3.1708 (losing 2.4292 points) at the time of writing in the market trading session today. The market capitalization of the stock stood at $143.8 million. The share volume traded for the RDBX stock was 55,045,216, more than five times of the average share volume of 10,047,406.
