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Chicken Soup for the Soul Buys Redbox as SPAC Market Sputters

  • Redbox shares tumble after deal struck at a huge markdown
  • Chicken Soup CEO Bill Rouhana sees Redbox as cash flow machine
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Chicken Soup for the Soul Entertainment Inc. has acquired Redbox Entertainment Inc., a movies-to-rent streaming service that went public through a blank-check company last year, another sign that once-booming SPACs and the deals they fueled are losing steam.

The acquisition is valued at about $31 million, according to data compiled by Bloomberg, a huge markdown from the $254 million valuation Redbox had traded for before the deal was announced Wednesday. Chicken Soup has agreed to take on about $321 million in Redbox debt and got the company a new term loan.