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Crackle streaming service owner Chicken Soup for the Soul Entertainment company completes acquisition of DVD-focused entertainment company red box Expand its footprint in free ad-supported streaming video.
The deal will give Chicken Soup shareholders 76.5 percent ownership of the combined company, with Redbox shareholders owning the remaining 23.5 percent. $375 million All-stock merger, which includes taking on Redbox’s $325 million in debt and $50 million in Soul stock chicken soup.
Redbox shareholders approved the merger on Aug. 9. Existing Redbox shareholders will receive a fixed exchange ratio of 0.087 shares of Class A Chicken Broth common stock per Redbox share.
Chicken Soup expects the merger to generate $40 million in synergies and triple the combined company’s total revenue to $500 million annually. Chicken Soup will also add about 11,000 movies and TV series to its 40,000-title streaming catalog to power 145 free ad-supported streaming TV platforms.
Additionally, Redbox’s 36,000 kiosks will expand Chicken Soup’s touchpoints with advertisers beyond free streaming channels and allow for more promotion of original films. Former Redbox CEO Galen C. Smith became Executive Vice Chairman of Redbox and Chicken Soup, while Jonathan Katz was named President of Chicken Soup.
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