![](https://cdn.benzinga.com/files/imagecache/2048x1536xUP/images/story/2022/05/11/chicken_soup_for_the_soul.png)
- Chicken Soup For The Soul Entertainment Inc (NASDAQ:CSSE) has agreed to acquire entertainment company Redbox Entertainment Inc (NASDAQ: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.
- Photo Via Wikipedia Commons