Chicken Soup for the Soul Entertainment is actively discussing a potential sale of the company. Chicken Soup for the Soul is the owner of a number of video on-demand networks and services, including Crackle and Popcornflix. It is also the owner of Redbox.
The company acquitted Redbox Entertainment mid-way through 2022, with the purchase contributing, in part, to losses over the past year. In August, Chicken Soup for the Soul confirmed a second quarter net loss of $43.7 million.
In a recent SEC filing (reported by Media Play News), Chicken Soup for the Soul confirmed it is “exploring strategic transactions,” including the sale of certain assets and/or a sale of the company. The same filing also confirmed that the company is currently in “active discussions” regarding possible transactions.
This is not the first time that it has been suggested Chicken Soup for the Soul could be sold. As part of its second quarter 2023 earnings release, the company confirmed that it was launching a ‘strategic review’ to explore options. Around the same time, the company’s CEO, William J. Rouhana, Jr., confirmed to Media Play News that a potential sale was one of those options.
As a result, the main development here is the confirmation that discussions are active, suggesting that a potential sale is very much a possibility.
In the meantime, it looks like the company is planning to free up cash flow by continuing to cut costs, while also factoring receivables to a tune of $55 million.
Over the past few months, Chicken Soup for the Soul has launched a number of campaigns and initiatives to improve Redbox business. Just last week, for example, the company announced plans to try and take advantage of the shuttering of Netflix’s DVD business by bolstering the library on offer at Redbox kiosks, along with a social media awareness campaign which includes free rentals.