Redbox Entertainment, the DVD and streaming company whose bright red kiosks were once a fixture of video entertainment, has agreed to be acquired by Crackle parent, Chicken Soup for the Soul Entertainment.
The $375-million all-stock deal, announced Wednesday, includes the assumption of Redbox's $325 million debt. It follows the company's filing with the SEC in April, which revealed it would be laying off 150 employees — or roughly 10% of its workforce — just six months after becoming a publicly traded company.
Redbox has struggled for years to hold its place in the digital war among streaming services. While its 38,000 DVD rental kiosks have welcomed people into virtually every grocery store and pharmacy in America for nearly two decades, the renaissance of physical media has seemed implausible.
