To help accomplish its goal, Redbox is partnering with Seaport Global Acquisition Corp., a publicly traded special acquisition company (SPAC), to go public. Once that happens, Redbox will reportedly carry an enterprise value of $693 million. Money raised will be used by Redbox to pay down debt and expedite its transformation, we’re told.
Redbox, the video rental company that specializes in automated rental kiosks, is going public. Buy why now, nearly 20 years after the business development arm of McDonald’s created the concept?
In announcing the move, Redbox said it has 40,000 kiosks across more than 150 retail partners that serve its more than 39 million loyalty members. Roughly 70 percent of its customers identify as late adopters of new technology, and it’s this market that Redbox believes it can hone in on.
Specifically, the video rental company hopes to convert these late adopters to its digital platforms over time.
Per the transaction, all existing shareholders will roll their equity into Redbox, and they’ll hold approximately 59 percent of the company’s outstanding common stock after the deal is finalized.
Part of Redbox’s transformation got under way last year with the launch of a free live TV streaming service. In December, Redbox added an ad-based on-demand component to the service.