Redbox Entertainment has completed its merger with special purpose acquisition company (SPAC) Seaport Global Acquisition Corp. and will begin trading on the Nasdaq Monday under the ticker symbol "RDBX."
Incubated originally by McDonald's, Redbox--which bills itself as "America's destination for affordable new-release movies and entertainment"--has operated a popular network of DVD rental kiosks for a variety of owners, both public and private.
Now under the stewardship of Galen Smith--who had been CFO of the kiosk company's last owner, Bellevue, Washington-based Outerwall--Redbox sees an opportunity to transition a marketing list of over 40 million kiosk users, assumed to late adopters to the streaming game, into a unified app-based OTT business combining, TVOD, AVOD and FAST components, along with a movie production studio.
Think of the Amazon Prime Video rollup, sans the SVOD component, and all the benefits and regulatory baggage that comes with the associated e-commerce empire, and you approach the diversified video business Redbox is trying to establish for the Average Middle American Consumer.
“Today marks the beginning of Redbox’s next chapter,” Smith said in a statement. “Since revolutionizing the way Americans rent movies nearly two decades ago, Redbox has continuously evolved and expanded our reach--all while offering our millions of loyal customers exceptional value in home entertainment. Today, we are building on our legacy and reaffirming our commitment to delivering a wide range of choice and convenience for consumers, as well as value for our Redbox stakeholders.
“As a public company, we plan to continue our strong momentum and accelerate our digital transformation," Smith added. "Through this transaction, and the incremental capital it provides, Redbox is equipped to advance our goal of creating a one stop experience that spans multiple entertainment mediums and simplifies the streaming experience. We are eager to capture the significant and growing opportunities ahead, take our business to the next level and achieve profitable growth for Redbox shareholders.”
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