Redbox Stock on Wild Run Day After Going Public

Redbox, the venerable kiosk disc rental company transitioning to digital entertainment distribution, on Oct. 26 saw its shares up more than 96% at $23.39 per share in early trading  — the day after going public on the Nasdaq exchange. Shares fell minutes later to around $19 and then $17 after opening at $11.75 per share, with trading volume above 7.6 million shares and climbing.

Redbox Entertainment Inc. is the new corporate identity following the company’s previously-announced merger with Seaport Global Acquisition Corp., a special purpose acquisition company, or SPAC.

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At launch, Redbox had more than 45 million shares outstanding, including a majority held by former owner Apollo Capital Management, which acquired the disc vendor from Outerwall in 2016 for $1.6 billion.

With Ringing of the Bell, Redbox Officially a Public Company

CEO Galen Smith travelled to New York’s famed Times Square to ring the opening bell on the NASDAQ  stock exchange Monday (Oct. 25) morning, marking Redbox’s official debut as a publicly traded company.

“It was amazing, it was a huge highlight,” Smith told Media Play News in an interview shortly after the ceremony. “This is something I’ve wanted to do for years. I started working on taking Redbox public back when I was a banker in 2008, so to be actually here and doing this feels like a truly incredible day.”

Rather than going the long and tedious IPO route, Redbox became Redbox Entertainment Inc. — with its common stock and warrants trading under the ticker symbols “RDBX” and “RDBXW,” respectively — through a merger with Seaport Global Acquisition Corp., a publicly traded special purpose acquisition company.

“We felt it was going to be the most efficient way to bring the company to market,” Smith said. “Our business is in transition, moving from physical only to multi-channel and multi-platform, so it allowed us to have a platform to really tell our story.”

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The story, of course, is a digital transformation to bulk up Redbox’s digital offerings — digital movie sales and rentals; free live TV, both on demand and ad-supported; and, down the road, selling subscriptions to streaming services — while using the company’s more than 40,000 disc-rental kiosks as a marketing tool to further facilitate the consumer transition from physical to digital.

“We have this incredible business with a very loyal customer base that absolutely loves movies,” Smith said. “They still love renting movies at our kiosks, but as we know consumers are shifting to digital, and we want to create an opportunity for them to make it easy by having all those opportunities in one place — free live TV, TVOD, and on demand  — and then as part of this transition we’re going through we also will be adding subscription channels.

“And then you have this single plane of glass, a single window, with single billing, that makes it incredibly easy for consumers to access all of this entertainment. And having this incredible billboard through our kiosks creates an amazing opportunity that really allows us to serve our customer base.”

See more photos of Redbox’s NASDAQ ceremony

 

Redbox’s digital transformation, ambitious as it might be, is fully on track, Smith said. “We’re making a lot of progress,” he said. “We’ve set some important goals and objectives, and we keep running and chasing after that. We’re pleased with the momentum, but we think there’s a huge opportunity and we want to seize that opportunity. We still have a long way to go.”

Redbox’s over-arching goal, Smith said, is to create a one-stop destination for entertainment. “And we’re going to get there by constantly bringing in more titles for ad-supported free live TV, as well as more channels — we’d love to get 200 or so channels; continuing to expand the functionality of TVOD; and, with subscriptions, it’s really important for us to get those deals done and make that content available to consumers.”

Through the business combination with Seaport Global, Smith said, Redbox raised nearly $90 million in cash. “Part of it went to pay down debt, and the other part we’re investing in the business, in four key areas,” he said. “First, we’re building up our channels platform. Second, we’re leaning into advertising. Right now we have this really creative program with Roku selling discounted bundles for Redbox digital. You get that when you buy a Roku streaming device at Walmart. Third, we’re going to license more content for our ad-supported service, both on demand and free live TV. And then we’re going to continue to build up Redbox Entertainment, the titles we’ve been distributing — we’re going to bring in more and more of those.”

 

Redbox Completes Combo With Seaport Global to Go Public

Redbox has completed its previously announced business combination with Seaport Global Acquisition Corp., a publicly traded special purpose acquisition company. As a result of the merger, the entity will be known as “Redbox Entertainment Inc.”

Redbox’s common stock and warrants are expected to begin trading on NASDAQ on Oct. 25 under the ticker symbols “RDBX and “RDBXW,” respectively.

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“Today marks the beginning of Redbox’s next chapter,” said Galen Smith, CEO of Redbox, 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. 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.”

‘Joe Bell,’ ‘Free Guy’ Top Redbox Charts

Vertical Entertainment’s Joe Bell topped Redbox’s disc rental chart the week ended Oct. 17, while Disney-owned 20th Century Studios’ Free Guy was the top Redbox On Demand title for the week.

Joe Bell, which earned $1.4 million at the domestic box office, stars Mark Wahlberg as a father who takes a road trip to bond with his gay son, who is being bullied at school. The film wasn’t be released on Blu-ray Disc or DVD until Oct. 19, but was available early at Redbox kiosks. It was No. 8 on the digital list.

Free Guy, which stars Ryan Reynolds as a bank teller who learns he is a video game character, earned $120.8 million at the domestic box office. While the film was released on disc Oct. 12, it isn’t available for rent at Redbox kiosks. It was No. 7 on the digital chart a week earlier.

Universal Pictures’ F9: The Fast Saga slipped to No. 2 on both the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions, and the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s more than 40,000 red kiosks.

The No. 3 title on the disc rental chart was Warner’s Space Jam: A New Legacy, followed by Universal’s The Forever Purge at No. 4, and Sony Pictures’ Escape Room: Tournament of Champions at No. 5.

On the Redbox On Demand chart, Escape Room: Tournament of Champions was No. 3 and The Forever Purge was No. 4. No. 5 was Paramount’s Snake Eyes: G.I. Joe Origins.

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Other newcomers to the disc rental chart include Lionsgate’s Survive the Game, with Bruce Willis, at No. 6, and The Green Knight at No. 9. Also, appearing at No. 7 was the Nicolas Cage starrer Pig from Decal, available at Redbox kiosks several weeks prior to its wide Blu-ray and DVD release.

Marvel Studios’ Black Widow, from Disney, fell to No. 8 on the disc rental chart.

Paramount’s animated Paw Patrol: The Movie landed at No. 10 on the digital chart.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Oct. 17:

  1. Joe Bell — Vertical
  2. F9: The Fast Saga — Universal
  3. Space Jam: A New Legacy — Warner
  4. The Forever Purge — Universal
  5. Escape Room: Tournament of Champions — Sony Pictures
  6. Survive the Game — Lionsgate
  7. Pig — Decal
  8. Black Widow — Disney/Marvel
  9. The Green Knight — Lionsgate
  10. The Boss Baby: Family Business — Universal/DreamWorks

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Oct. 17:

  1. Free Guy — Disney/20th Century
  2. F9: The Fast Saga — Universal
  3. Escape Room: Tournament of Champions — Sony Pictures
  4. The Forever Purge — Universal
  5. Snake Eyes: G.I. Joe Origins — Paramount
  6. The Addams Family 2 — MGM
  7. Halloween (2018) — Universal
  8. Joe Bell — Vertical
  9. The Boss Baby: Family Business — Universal/DreamWorks
  10. Paw Patrol: The Movie — Paramount

 

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Redbox Adding 20 FAST Channels to Streaming Service

Redbox Oct. 18 announced it will begin offering more than 20 new Free Ad-Supported Free Live-TV (FAST) channels on its streaming service in the coming weeks, including live local news, kids and Spanish language programming. New channels include America’s Funniest Home Videos, three Sony Canal Spanish-anguage channels, Electric Now and the Wu Tang Collection.

In addition, Redbox signed an agreement with Cox Media Group to stream 10 live local news channels from markets that include Seattle, Atlanta, and Orlando. The company also signed a deal with Yahoo! Finance to begin offering its streaming business news channel.

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“This is the largest increase of new, free streaming channels in Redbox’s history,” Chris Yates, GM of Redbox On Demand, said in a statement. “From local news to some of the best kids shows, there is even more programming for everyone to enjoy. We’re excited to see these channels go live soon.”

The Redbox streaming app is available on a wide range of devices including Roku, Samsung, LG, Vizio, Apple TV, PlayStation 4, PlayStation 5, iOS and Android mobile devices and Xbox.

Among the new FAST channels, “Alter” is a horror brand for novel and grounded stories exploring the human condition through warped perspectives. Since its inception, the channel released the two-part horror series “50 States of Fright,” starring Rachel Brosnahan (“The Marvelous Mrs. Maisel”), Travis Fimmel (“Vikings”) and Christina Ricci (Z: The Beginning of Everything) and executive produced by Sam Raimi (Evil Dead), which was acquired by Amblin Partners to develop into a feature film. Other titles include the SXSW 2020-nominated short film Stucco, co-directed and co-written by Janina Gavankar (“The Morning Show”), and Inferno, an Alter original short film from director, Bishal Dutta.

“America’s Funniest Home Videos” features free and hilarious home video and viral video moments from “AFV.” Watch the funny videos any time — including funny kids, family pranks, fail videos, funny pet videos, silly babies and more.

Cine Romántico is the first U.S. Spanish-language free ad-supported streaming movie channel dedicated entirely to romance movies. Cine Romántico warms the heart with stories full of love, joy, emotion, and laughter. Escape to romance with the best in Hollywood TV movies all in Spanish. With a vast array of star-driven movies featuring contemporary storylines, some of the titles on the service include Brimming with Love, Love Throws a Curve, Hopeless Romantic, Groomzilla, Instant Nanny and The Wedding Do-Over.

Redbox to Launch Third-Party SVOD App Platform

Taking a page from the Amazon Prime Video playbook, Redbox is assembling a branded subscription streaming offering featuring third-party apps on its digital AVOD/FAST platform.

The kiosk/digital distributor Oct. 15 announced a multi-faceted agreement with Curiosity Inc., to bring the latter’s subscription video-on-demand service, Curiosity Stream, and select content on its ad-supported VOD and free ad-supported streaming television streaming services. Redbox will also offer Curiosity Stream as a premium subscription offering when it bows a branded “SVOD Channels” in 2022.

Under the deal, the Curiosity Stream SVOD service will be made available to select Redbox customers on a promotional trial basis and promoted on Redbox’s 40,000 kiosks and digital streaming properties. Additionally, Redbox will license Curiosity content, which will be offered on Redbox’s AVOD and FAST streaming services in the coming months.

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In 2015, Amazon Prime Video debuted “Amazon Channels” featuring third-party SVOD apps to its Prime members. The platform has been credited with driving subscriptions to services such as Starz, the former HBO Now and other apps.

“Our customers will appreciate the high-quality content delivered by Curiosity Stream, and we’re excited to work with them to grow their viewership through distribution of their service on the Redbox app,” Jason Kwong, chief strategy and digital officer at Redbox, said in a statement.

“We are thrilled to partner with Redbox as they continue to expand their video streaming offerings,” said Brandon Fong, SVP of partnerships and distribution for Curiosity. “As the leading factual entertainment service, Curiosity is ideally positioned to deliver affordable, high-value entertainment to Redbox customers who want to know more about the world around them.”

Lionsgate to Distribute Redbox Originals and License AVOD Content

Lionsgate and Redbox Oct. 14 announced a multiyear distribution deal under which Lionsgate will handle distribution of Redbox Entertainment titles across home entertainment windows in addition to subscription video on demand (SVOD) licensing for select titles under the Redbox Entertainment brand.

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Recently released Redbox Entertainment films include Capone (Tom Hardy), Shadow in the Cloud (Chloë Grace Moretz and Nick Robinson) and SAS: Red Notice (Sam Heughan and Ruby Rose). Redbox Entertainment expects to release 36 original movies annually, including upcoming releases The Last Son (Colson Baker a.k.a. musician Machine Gun Kelly, and Heather Graham), Bandit (Josh Duhamel and Mel Gibson) and Muti (Morgan Freeman and Cole Hauser).

“Redbox has a large slate of films coming in 2022 and beyond, and we’re excited to work with Lionsgate to identify those that are a great fit for their distribution model,” Galen Smith, CEO of Redbox, said in a statement. “Ron Schwartz and his team have been terrific partners over the years, and we are excited to extend our relationship to tap into their world class distribution prowess to create value for both companies.”

The two companies are also partnering on an agreement to license films and television series from Lionsgate’s 17,000-title library to Redbox‘s ad-supported video on demand (AVOD) and Free Ad Supported Television (FAST) services. Redbox has aggressively scaled its AVOD streaming service to include thousands of popular films and television series in the past year while also growing to more than 100 FAST Channels available on its streaming app, with plans to add more in the coming months.

“Lionsgate’s longstanding partnership with Redbox has created significant value for both our companies,” said Ron Schwartz, Lionsgate president of worldwide distribution, Motion Picture Group. “That collaboration has evolved into a multifaceted distribution relationship across home entertainment, SVOD and AVOD platforms that allows us to continue to diversify our content offering to our consumers.”

‘F9’ Tops Redbox Charts for Third Week

Universal Pictures’ F9: The Fast Saga remained in the top spots on Redbox’s disc rental and digital charts the week ended Oct. 10.

It’s the third consecutive week at No. 1 for the latest entry in the “Fast & Furious” franchise on both the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions, and the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s more than 40,000 red kiosks.

The No. 2 title on the disc rental chart was the newly released Space Jam: A New Legacy, from Warner Bros. Home Entertainment. A reboot of 1996’s Space Jam, the new version casts LeBron James as the basketball superstar paired with Bugs Bunny in a world-altering basketball game. It earned $70.5 million at the domestic box office.

The No. 2 digital title, and No. 3 on the disc chart, was another newcomer, Sony Picture’s Escape Room: Tournament of Champions. The sequel to 2019’s Escape Room earned $25.2 million at the domestic box office.

The newcomers pushed Universal’s The Forever Purge to No. 4 on the disc chart and No. 3 on the digital chart.

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Marvel Studios’ Black Widow, from Disney, fell to No. 5 on the disc rental chart.

The No. 4 digital title was Paramount’s Snake Eyes: G.I. Joe Origins. The No. 5 digital title remained MGM’s animated The Addams Family 2.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Oct. 10:

  1. F9: The Fast Saga — Universal
  2. Space Jam: A New Legacy — Warner
  3. Escape Room: Tournament of Champions — Sony Pictures
  4. The Forever Purge — Universal
  5. Black Widow — Disney/Marvel
  6. Cruella — Disney
  7. The Boss Baby: Family Business — Universal/DreamWorks
  8. The Survivalist — Quiver
  9. Hitman’s Wife’s Bodyguard — Lionsgate
  10. Aileen Wuornos: American Boogeywoman — Redbox

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Oct. 10:

  1. F9: The Fast Saga — Universal
  2. Escape Room: Tournament of Champions — Sony Pictures
  3. The Forever Purge — Universal
  4. Snake Eyes: G.I. Joe Origins — Paramount
  5. The Addams Family 2 — MGM
  6. The Boss Baby: Family Business — Universal/DreamWorks
  7. Free Guy — Disney/20th Century
  8. Venom — Sony Pictures
  9. The Conjuring: The Devil Made Me Do It — Warner
  10. Hitman’s Wife’s Bodyguard — Lionsgate

 

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Redbox Advances in Move to Go Public Through Backstop Sub Agreements

Seaport Global Acquisition Corp., the special purpose acquisition company formed to help Redbox go public, on Oct. 12 announced that it has entered into backstop subscription agreements in connection with the business combination.

As previously announced on May 17, 2021, the transaction will be funded by a combination of $145 million of cash held in the trust account of Seaport Global and a fully committed PIPE of $50 million.

The backstop agreements, which total up to $36 million, ensure that Redbox will have the capital to fund its digital transformation and expansion initiatives, according to a news release. These backstop agreements should ensure the minimum cash condition required of the business combination agreement will be met.

A special meeting of Seaport Global Acquisition stockholders will be held Oct. 20.  If certain of the proposals at the Special Meeting are approved, the parties anticipate the business combination will close shortly thereafter, subject to the satisfaction or waiver (as applicable) of all other closing conditions.

Upon closing, Redbox’s common stock is expected to trade on Nasdaq under the ticker symbol RDBX.

“We appreciate the vote of confidence in Redbox’s digital future expressed by Seaport Global Acquisition and our existing investors,” said Galen Smith, CEO of Redbox. “Redbox is one of the most trusted brands in the entertainment industry, and we have a unique opportunity to extend the value we deliver to consumers as they cut the cord and search for affordable entertainment. We look forward to completing the combination and demonstrating our progress as a public company under the RDBX symbol.”