Redbox to Go Public in Deal With SPAC, Company Valued at $693 Million

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Redbox, the DVD-rental kiosk and streaming company, is going back to the public markets. On Monday, Redbox announced that it reached a definitive agreement to combine with Seaport Global Acquisitio…

, Screenvision and Basil Iwanyk, producer of the “John Wick” film series and founder of Thunder Road Films.

Redbox said it will use the capital it raises from the transaction to pay down debt as well as invest in multiple business models, including film distribution, transactional video on demand , premium video on demand , ad-supported linear and on demand . Redbox currently has more than 39 million loyalty members across the U.S., service customers through 40,000 kiosks across more than 150 retail partners with new home-video releases. Approximately 70% of those customers identify as “late adopters” of new technology, which Redbox said gives the company “a unique opportunity to convert customers to its digital platforms over time.”

As part of the transaction, all existing shareholders will roll 100% of their equity in Redbox, including funds managed by affiliates of Apollo Global Management,. Upon close of the combination, those existing shareholders will hold approximately 59% of the outstanding common stock.

 

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Wasn’t this something that should have been done 5-10 years ago? Are there really enough DVD players left to make this viable going forward? I know they do streaming, but that makes Redbox one of many services doing streaming...unsure where their niche exists, now and tomorrow

redbox?! $693m!!! in 2021?!

Are they hoping WSB will save them like we did GME & AMC? I'd rather have Blockbuster back.

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