March 20, 2023


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Hen Soup for the Soul Amusement to Purchase Redbox,

12 min read

Combination makes foremost independent, built-in immediate-to-customer media platform delivering quality leisure for worth mindful consumers

Varieties streaming industry’s leading unbiased AVOD platforms

Administration to host convention connect with and are living webcast on May possibly 11, 2022 at 8:30 am ET

COS COB, Conn., Could 11, 2022 (World NEWSWIRE) — Rooster Soup for the Soul Leisure, Inc. (Nasdaq: CSSE), one of the most significant operators of promoting-supported video clip-on-need (AVOD) streaming products and services, and Redbox Enjoyment Inc. (Nasdaq: RDBX), a leading leisure organization, have entered into a definitive agreement below which Chicken Soup for the Soul Enjoyment will purchase Redbox.

The mix of Chicken Soup for the Soul Leisure and Redbox will produce a top impartial, built-in direct-to-purchaser media system delivering premium leisure for worth aware people. The combined company will have improved scale throughout articles output and distribution, with a significant material library, far more than 38,000 kiosks nationwide, intensive electronic abilities in AVOD, TVOD, PVOD, and Quick, and accessibility to tens of millions of specific clients, including almost 40 million Redbox Benefits members.

Jointly, the blended corporations will have the industry’s leading, independent AVOD platforms, one of the quickest escalating segments of the total enjoyment industry. According to a recent review by IAB, advertisement spending on connected Tv platforms greater 57% from 2020 to 2021 and is anticipated to raise a different 39% this calendar year.

“Today marks a transformative instant for Rooster Soup for the Soul Enjoyment and an inflection level for the advert-supported streaming market,” mentioned William J. Rouhana Jr., chairman and main government officer of Chicken Soup for the Soul Leisure. “Our acquisition of Redbox will accelerate the scaling of our enterprise as it brings together complementary groups and services to create the streaming industry’s leading unbiased AVOD. Redbox has 40 million shoppers in its loyalty program and large-probable electronic tv belongings together with carriage of over 130 Quick electronic channels on its Free Live Television set platform, as nicely as a sturdy TVOD and PVOD system. Collectively, we will create a totally developed AVOD and Rapidly streaming business enterprise: established branded streaming companies, formidable content and output abilities, and a strong AVOD and Rapidly advertisement profits operation.”

“We feel that Chicken Soup for the Soul Entertainment is the great partner for Redbox. By joining forces, we will speed up Redbox’s transition from a physical to superior growth electronic media firm and be the only leisure provider genuinely concentrated on worth for individuals,” stated Galen Smith, main executive officer of Redbox. “This all-inventory transaction delivers Redbox stockholders with the prospect to participate in the substantial in close proximity to- and extensive-expression upside prospective of a diversified and growing company with bigger scale and assets. With our footprint of extra than 38,000 kiosks, various content libraries and put together streaming platforms, we will be nicely positioned to produce people a prosperity of high-high-quality amusement alternatives.”

Rouhana continued, “More and extra viewers are embracing advert-supported streaming choices in a content environment characterized by twine-reducing and saturation of significant-priced subscription companies. In close proximity to time period, these disorders are even additional acute versus a macro backdrop of growing inflation and financial uncertainty. With the combination of a substantial information library, electronic AVOD and Fast channel abilities, and an growing worldwide audience, we think that we will be able to provide more exciting high quality amusement for thousands and thousands of value conscious viewers and travel additional progress and benefit generation for our stockholders.”

Financially Powerful

The mix is predicted to be accretive to Altered EBITDA in 2023, with several possibilities to cross-sell each and every company’s purchaser foundation throughout digital properties, distribute Display screen Media titles by way of Redbox kiosks and leverage tech and know-how to absolutely capitalize on Redbox’s AVOD option. The enterprise expects to deliver once-a-year-run price expense synergies in extra of $40 million in 2023. Hen Soup for the Soul Entertainment expects that the blended enterprise will exit 2022 with a operate-amount exceeding $500 million of earnings and $100 – $150 million of Altered EBITDA.

Transaction Facts

Under the conditions of the settlement, which has been accredited by the Boards of Directors of both firms, Redbox stockholders will acquire a fastened trade ratio of .087 of a share of course A common inventory of Chicken Soup for the Soul Entertainment for each Redbox share. Adhering to the shut of the transaction, Chicken Soup for the Soul Leisure stockholders will very own close to 76.5% of the mixed company, and Redbox stockholders will personal approximately 23.5% of the merged organization, on a absolutely diluted foundation.

Timing and Approvals

Redbox stockholders holding somewhere around 86% of the Redbox voting ability have entered into a voting arrangement to approve the transaction. Chicken Soup for the Soul Amusement stockholders keeping roughly 91% of the voting electrical power of Rooster Soup for the Soul Entertainment have sent a composed consent approving the transaction.

The transaction is expected to shut in the second fifty percent of 2022, issue to the receipt of essential regulatory approvals and other customary closing situations. On closing, the blended entity will keep the identify Rooster Soup for the Soul Amusement and will continue to trade under the ticker symbol “CSSE” on the Nasdaq stock exchange.

Guggenheim Securities, LLC is serving as financial advisor to Rooster Soup for the Soul Amusement and Brian Ross of Graubard Miller is serving as authorized counsel to Chicken Soup for the Soul Leisure. PJT Partners and Kroll, LLC are serving as economic advisors to Redbox. Weil, Gotshal & Manges LLP is serving as authorized counsel to Redbox.

Conference Simply call
The management of Rooster Soup for the Soul Leisure and Redbox will host an investor conference connect with right now, Might 11, 2022, at 8:30 a.m. ET, to talk about the proposed transaction as properly as Rooster Soup for the Soul Entertainment’s results for its first quarter finished March 31, 2022. For intrigued traders who would like to participate, the domestic toll-totally free obtain quantity is (888) 428-7458 and the intercontinental toll-free of charge entry quantity is (862) 298-0702. After connected with the operator, request access to the Chicken Soup for the Soul Very first Quarter 2022 Earnings Convention Get in touch with.

A webcast of the phone will also be offered at the activities section of the Hen Soup for the Soul Entertainment trader relations site:

An investor presentation with additional in-depth information and facts with regards to the proposed transaction will be furnished by Hen Soup for the Soul Amusement with the SEC less than include of a Latest Report on Variety 8-K, which can be seen on the SEC’s internet site: This presentation will also be offered on the Chicken Soup for the Soul trader relations site:

About Chicken Soup for the Soul Leisure
Hen Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) operates video clip-on-demand streaming expert services (VOD). The organization owns Crackle Furthermore, which owns and operates a variety of advert-supported VOD streaming providers which include Crackle, Chicken Soup for the Soul, Popcornflix, Popcornflix Young children, Truli, Pivotshare, Españolflix and FrightPix. The enterprise also acquires and distributes online video written content as a result of its Display screen Media and 1091 Pictures subsidiaries and provides unique video articles by means of the Hen Soup for the Soul Tv Group. Hen Soup for the Soul Leisure is a subsidiary of Chicken Soup for the Soul, LLC, which publishes the well known e book series and produces tremendous-top quality pet foodstuff beneath the Hen Soup for the Soul brand title.

About Redbox
Redbox Enjoyment Inc. (NASDAQ: RDBX) is a main enjoyment corporation that presents consumers obtain to a massive variety of content material across electronic and physical media. The organization operates a swiftly rising electronic streaming services that provides equally advertisement supported (AVOD) and paid out flicks from Hollywood studios and hundreds of content partners, as very well as around 130 channels of absolutely free advertisement supported streaming tv (Rapidly). The Redbox application is out there on main entertainment platforms that consist of Roku devices, related TVs, gaming platforms, the world-wide-web as perfectly iOS and Android products. Redbox also operates its common kiosks across the US at hundreds of retail destinations – giving customers inexpensive entry to the latest in amusement. The firm generates, acquires, and distributes movies by way of its Redbox Entertainment™ label, delivering rights to expertise-led films that are distributed across Redbox’s digital and actual physical products and services as well as through 3rd-social gathering digital providers. Headquartered just outside of Chicago, Redbox has offices in Los Angeles and Seattle. For additional data, visit

Forward-Looking Statements
This interaction relates to a proposed organization blend transaction between Hen Soup for the Soul Leisure, Inc. (“CSSE”) and Redbox Amusement Inc. (“RDBX”). This communication incorporates “forward-hunting statements” inside of the indicating of the federal securities legal guidelines. Forward-searching statements deal with a variety of topics, such as, for case in point, projections as to the anticipated benefits of the proposed transaction, the anticipated impression of the proposed transaction on the mixed organization’s enterprise and long run economical and working effects, the expected total and timing of synergies from the proposed transaction, and the predicted closing date for the proposed transaction. Statements that are not historic facts, such as statements about CSSE’s and RDBX’s beliefs, plans and anticipations, are ahead-looking statements. These kinds of statements are centered on CSSE’s and RDBX’s latest expectations and are topic to a variety of components and uncertainties, which could bring about real results to vary materially from those people explained in the ahead-searching statements. Ahead-wanting statements typically consist of phrases this kind of as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “estimate,” “would,” “target” and related expressions, as well as versions or negatives of these terms. The next significant variables and uncertainties, amongst some others, could cause actual outcomes to differ materially from individuals described in these ahead-seeking statements: the uncertainty as to the extent of the period, scope and impacts of the COVID-19 pandemic political and economic uncertainty, including any faltering in world wide economic problems or the security of credit score and economic marketplaces, erosion of shopper self-confidence and declines in consumer paying unavailability of raw resources, products and services, provides or production capability alterations in geographic scope or products or customer blend variations in export classifications, import and export regulations or duties and tariffs improvements in CSSE’s or RDBX’s estimates of their envisioned tax level centered on present-day tax regulation CSSEs means to productively integrate RDBX’s organizations and technologies the danger that the envisioned benefits and synergies of the proposed transaction and development prospects of the blended enterprise may perhaps not be totally achieved in a well timed fashion, or at all adverse outcomes in litigation matters, together with the opportunity for litigation related to the proposed transaction the possibility that CSSE or RDBX will be unable to retain and use key staff the threat related with CSSE’s and RDBX’s capacity to attain the approvals of their respective stockholders expected to consummate the proposed transaction and the timing of the closing of the proposed transaction, such as the chance that the situations to the transaction are not satisfied on a timely foundation or at all or the failure of the transaction to near for any other purpose or to close on the predicted terms, which includes the expected tax therapy the chance that any regulatory acceptance, consent or authorization that may well be necessary for the proposed transaction is not attained or is acquired topic to disorders that are not predicted unanticipated troubles or expenditures relating to the transaction, the response of organization associates and retention as a consequence of the announcement and pendency of the transaction uncertainty as to the extended-phrase worth of CSSE’s frequent inventory and the diversion of administration time on transaction-associated matters. These challenges, as properly as other risks connected to the proposed transaction, will be incorporated in the registration statement on Sort S-4 and proxy statement/prospectus that will be submitted with the Securities and Exchange Fee (the “SEC”) in connection with the proposed transaction. Even though the record of variables offered listed here is, and the checklist of factors to be offered in the registration assertion on Sort S-4 are, viewed as consultant, no these kinds of list need to be considered to be a full assertion of all probable dangers and uncertainties. For further facts about other elements that could trigger true benefits to vary materially from those people described in the forward-looking statements, make sure you refer to CSSE’s and RDBX’s respective periodic studies and other filings with the SEC, including the risk things contained in CSSE’s and RDBX’s most modern Quarterly Reports on Kind 10-Q and Once-a-year Reviews on Variety 10-K. Forward-searching statements signify management’s present anticipations and are inherently unsure and are manufactured only as of the day hereof. Apart from as demanded by legislation, neither CSSE nor RDBX undertakes or assumes any obligation to update any ahead-seeking statements, whether or not as a end result of new facts or to mirror subsequent gatherings or situation or usually.

No Give or Solicitation
This communication is not intended to and shall not constitute an supply to buy or sell or the solicitation of an offer to invest in or provide any securities, or a solicitation of any vote or acceptance, nor shall there be any sale of securities in any jurisdiction in which these types of give, solicitation or sale would be illegal prior to registration or qualification under the securities legislation of any such jurisdiction. No providing of securities shall be produced, except by implies of a prospectus meeting the requirements of Part 10 of the U.S. Securities Act of 1933, as amended.

Additional Data and Where to Find It
In link with the proposed transaction, CSSE intends to file with the SEC a registration statement on Variety S-4 that will consist of a proxy assertion of RDBX and that also constitutes a prospectus and Information and facts Statement of CSSE. Each and every of CSSE and RDBX could also file other applicable documents with the SEC regarding the proposed transaction. This doc is not a substitute for the proxy statement/Information and facts Assertion/prospectus or registration assertion or any other document that CSSE or RDBX may possibly file with the SEC. The definitive proxy assertion/Information Assertion/prospectus (if and when accessible) will be mailed to stockholders of CSSE and RDBX. Investors AND Safety HOLDERS ARE URGED TO Read THE REGISTRATION Statement, PROXY Statement/Information Statement/PROSPECTUS AND ANY OTHER Suitable Files THAT Could BE Filed WITH THE SEC, AS Well AS ANY AMENDMENTS OR Health supplements TO THESE Documents, Meticulously AND IN THEIR ENTIRETY IF AND WHEN THEY Turn into Readily available Mainly because THEY Have OR WILL Comprise Important Facts ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be in a position to obtain cost-free copies of the registration statement and proxy statement/Data Assertion/prospectus (if and when offered) and other paperwork containing significant details about CSSE, RDBX and the proposed transaction, after this kind of documents are submitted with the SEC through the internet site preserved by the SEC at Copies of the files filed with the SEC by CSSE will be readily available free of demand on CSSE’s internet site at or by making contact with CSSE’s Trader Relations Department by email at [email protected] or by phone at 646-776-0886. Copies of the documents filed with the SEC by RDBX will be offered cost-free of demand on RDBX’s web-site at or by speaking to Zaia Lawandow at [email protected]

Specific Information With regards to Members in the Solicitation
CSSE, RDBX and specific of their respective administrators and govt officers may possibly be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Info about the directors and executive officers of CSSE, together with a description of their immediate or oblique passions, by stability holdings or otherwise, is established forth in CSSE’s proxy assertion for its 2021 once-a-year conference of stockholders, which was filed with the SEC on April 30, 2021, and CSSE’s Once-a-year Report on Type 10-K for the fiscal 12 months ended December 31, 2021, which was filed with the SEC on March 31, 2022 and on its web-site at Information and facts about government officers of RDBX, such as a description of their direct or indirect pursuits, by stability holdings or in any other case, is established forth in RDBX’s proxy statement for its 2021 yearly assembly of stockholders, which was submitted with the SEC on Oct 15, 2021, and RDBX’s Yearly Report on Type 10-K for the fiscal yr finished December 31, 2021, which was filed with the SEC on April 15, 2022 and on its web page at Details about the administrators of RDBX and other members in the proxy solicitations, will be contained in the proxy assertion/prospectus and other relevant components to be submitted with the SEC about the proposed transaction when these types of elements turn out to be offered. Investors really should read through the proxy statement/prospectus very carefully when it will become accessible just before creating any voting or investment decision conclusions. You may get hold of free of charge copies of these files from CSSE or RDBX using the sources indicated above.

Hen Soup for the Soul Leisure Trader Relations
Taylor Krafchik
[email protected]
(646) 776-0886

Hen Soup for the Soul Entertainment Media Make contact with
Kate Barrette
RooneyPartners LLC
[email protected]
(212) 223-0561

Redbox Investor Relations & Media Speak to
Zaia Lawandow
[email protected]


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