Cosmo DeNicola Companies News


Thursday, September 8, 2022

Crackle Plus and PetSmart to Launch New Original Makeover Series Pet Caves

Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) today announced it has partnered with PetSmart to create a 10-episode series celebrating pet parents who will do anything for their furry friends. Pet Caves will premiere exclusively on Chicken Soup for the Soul - a free AVOD streaming TV service available on VIZIO and Samsung-connected TVs beginning September 1. The series will also be available on demand for free on September 15 via Crackle on CTVs, mobile and tablet devices as well as at Crackle.com. 

Featuring pet owners transforming a space in their home to make their pets as happy as their pets make them, Pet Caves is hosted by Atlanta-based pet behaviorist Kayla Oliver and celebrity design architect Nina Ferrer (HGTV’s Design Star and Clean House New York). In each episode, Kayla and Nina visit a PetSmart store to outfit the dazzling domicile with all the latest and greatest pet necessities and accessories. Dogs, cats, bunnies, and even a bearded dragon all get the white glove treatment to turn their living space into their own private pet paradise. 

In addition to PetSmart products and services highlighted in each episode, the series will also feature strategic media buys and other tailored content from PetSmart across Crackle Plus’ network of streaming services.   

 

“We saw Pet Caves as a great opportunity to work with two beloved brands, Chicken Soup for the Soul Studios and PetSmart,” said Rasheed J. Daniel, principal, and executive producer for Teamsheed. “As a black-owned business, we were also attracted to the diversity not only reflected in the show but also the values reflected in both of these esteemed organizations.” 

“Our partnership with PetSmart perfectly reflects our commitment to provide like-minded brand partners with the opportunity to act as creative collaborators on our quality programming and to pursue unique integrations,” said Darren Olive, executive vice president of National Sales and Strategy for Crackle Plus. “We continue to double down on bringing a fresh viewing experience to our audience who are not only savvy consumers but are also interested in the ways in which content can go beyond the screen.”

 

“At PetSmart, we’re always seeking innovative ways to connect with pet parents and share our unrivaled expertise and love for pets,” says PetSmart senior vice president and chief marketing officer Will Smith. “Home is truly where our pets are, and what better way to show we’ll do anything for pets than by shining a light on the stories of people who revitalize their homes just for their furry, feathered, or scaly family friends? That’s exactly what Pet Caves does.”

The series is executive produced by Rasheed J. Daniel of TeamSheed Productions and Michael Winter for Chicken Soup for the Soul Entertainment. Corey Noll and Lexi Brown serve as co-executive producers, and the series is distributed globally by Screen Media.

 

Crackle Plus’ recent releases include the plus-size mountain climber documentary Kili Big, season 2 of the hit college thriller series In the Vault, the exclusive scripted series Les Norton, starring Rebel Wilson, the sci-fi series Salvage Marines starring Casper Van Dien, Inside the Black Box, hosted by Joe Morton, and the award-winning BBC series Sherlock, starring Benedict Cumberbatch and Martin Freeman. Crackle Plus also recently announced season three of the award-winning series Going From Broke.

 

The Crackle Plus and Redbox streaming services are currently distributed through over 140 touchpoints in the U.S. on platforms including Amazon Fire TV, RokuTV, Apple TV, Smart TVs (Samsung, LG, Vizio), gaming consoles (PS4 and Xbox One), Plex, iOS, and Android mobile devices and on desktops at Crackle.com and Redbox.com, with plans to expand to over 160 touchpoints.

 

ABOUT PETSMART

PetSmart LLC is the leading pet retailer offering products, services and solutions for the lifetime needs of pets. At PetSmart, we love pets and we believe pets make us better people. Every day with every connection, PetSmart’s passionate associates help bring pet parents closer to their pets so together they can live more fulfilled lives. This vision impacts everything we do for our customers, the way we support our associates and how we give back to our communities.

 

PetSmart operates approximately 1,660 pet stores in the United States, Canada and Puerto Rico, as well as more than 200 in-store PetSmart PetsHotel® dog and cat boarding facilities. We provide a broad range of competitively priced pet food and products as well as services such as dog training, pet grooming, pet boarding, PetSmart Doggie Day Camp™ and pet adoption.

 

PetSmart, PetSmart Charities® and PetSmart Charities® of Canada work with nearly 4,000 animal welfare organizations to bring adoptable pets into stores so they have the best chance possible of finding a forever home. Through this in-store adoption program and other signature events, PetSmart has facilitated over 10 million adoptions, more than any other brick-and-mortar organization.

 

ABOUT TEAMSHEED

TeamSheed Productions is a full-service production company dedicated to premium reality, commercial, film, and documentary content. Launched in 2020, Teamsheed’s vision is to continually redefine storytelling by offering a solution to proper representation bundled with a history of battle-tested production strategies and hit-making execution. TeamSheed is a private Black-owned company with production and development partners across the US.

 

Tuesday, August 30, 2022

Chicken Soup for the Soul Entertainment Completes Acquisition of Redbox Entertainment Inc.

Acquisition creates an entertainment company for value-conscious consumers across AVOD, FAST, and TVOD with over 40 million customer loyalty members

Revenue is expected to more than triple over the next year; increased scale and over $40 million in operating synergies support an accelerated path to positive free cash flow  

Adds over 11,000 additional movies and television shows to the company’s already robust 40,000-title streaming catalog, as well as Free Live TV platform with over 145 free ad-supported streaming television (FAST) channels and transactional video on demand (TVOD) platforms available on dozens of devices

Redbox’s 36,000 kiosks will expand the company’s touchpoints for advertisers beyond free streaming channels and provide new marketing capability to promote original movies  

Galen C. Smith appointed to the new role of executive vice chairman of Redbox and Chicken Soup for the Soul Entertainment, and entertainment industry veteran Jonathan Katz named president of Chicken Soup for the Soul Entertainment

COS COB, Conn. & OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Chicken Soup for the Soul Entertainment (NASDAQ: CSSE) today announced the company has completed the acquisition of Redbox Entertainment Inc. (NASDAQ: RDBX) – creating an entertainment content and distribution offering targeting value-conscious consumers. The combined companies now offer ad-supported video on demand (AVOD), over 145 free ad-supported streaming television (FAST) channels, transactional video on demand (TVOD), and a network of over 36,000 kiosks nationwide, all supported by original film and television production and distribution divisions. The company expects revenue to more than triple through this acquisition to approximately $500 million annually.

Today, the company also announced the appointment of two key media executives with deep knowledge of the entertainment and streaming space to drive its continued growth. Galen C. Smith, former chief executive officer of Redbox, has been appointed to the new role of executive vice chairman of Redbox and Chicken Soup for the Soul Entertainment. Smith will oversee the company’s future growth plans, including strategic acquisitions. Also announced today, Jonathan Katz has been named president of Chicken Soup for the Soul Entertainment. Katz previously held senior executive roles at Scripps Networks, Katz Networks, and Turner Broadcasting. In his new role, Katz will oversee the company’s operating businesses, including streaming services, Redbox kiosks, and original content studios. Smith and Katz will report to William J. Rouhana, Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment.

“I’ve been looking forward to the day Redbox would become part of the Chicken Soup for the Soul Entertainment family – and today is that day. The Redbox brand is a fixture in American entertainment and now joins our powerful portfolio of streaming brands, including Crackle, Popcornflix, and Chicken Soup for the Soul,” said William J. Rouhana, Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “This acquisition gives us immediate scale, growing our film and television library to over 51,000 assets, establishing a broad complement of AVOD, TVOD, and FAST channel services, reaching millions of viewers across dozens of platforms, and adding Redbox’s 36,000 kiosks nationwide, with a customer loyalty program that has over 40 million members. These collective assets create a fully formed streaming business for a new era of digital entertainment that we anticipate will accelerate the growth and profitability of our company well ahead of our original plans. The team at Redbox is incredible and will join an equally talented team across our Chicken Soup for the Soul Entertainment companies. I’m excited to welcome our new colleagues and look forward to sharing more about our plans for the future.”

Financially Compelling

Chicken Soup for the Soul Entertainment expects that the combined company will exit 2022 with a run rate exceeding $500 million of revenue and $100 - $150 million of Adjusted EBITDA and expects to deliver annual run rate cost synergies in excess of $40 million in 2023. The combined company also sees numerous opportunities to drive revenue synergies from its complementary assets, including expansion of ad inventory through distribution of its larger content library and production pipeline across AVOD and FAST channels, and increased access to the TVOD window for original film productions. Additionally, the Redbox kiosk network and loyalty program offer a new marketing channel to promote the company’s original content productions.

Transaction Details

Chicken Soup for the Soul Entertainment had already approved the transaction at the time of signing. Redbox shareholders approved the transaction on August 9. Existing Redbox shareholders will receive a fixed exchange ratio of 0.087 of a share of class A common stock of Chicken Soup for the Soul Entertainment per Redbox share. As previously announced, Chicken Soup for the Soul Entertainment stockholders will own approximately 76.5% of the combined company, and Redbox stockholders will own approximately 23.5% of the combined company, on a fully diluted basis.

As part of the transaction, Chicken Soup for the Soul Entertainment has assumed the obligations under Redbox’s outstanding private and public warrants including those that traded on the Nasdaq Global Market under the symbol “RDBXW.” The warrants replacing the former Redbox warrants will be issued on a one for one basis and entitle the holder to receive upon exercise shares of CSSE Class A Common Stock equal to the product of (A) the number of shares of Redbox Class A Common Stock that were subject to the holder’s Redbox warrants and (B) 0.087 (the “Exchange Ratio”), with a corresponding change to the exercise price of such warrant based on the Exchange Ratio. No fractional share will be issued upon warrant exercise. Accordingly, a holder will be required to surrender the equivalent of warrants to acquire 11.494 shares of Redbox Class A Common Stock in order to purchase one share of CSSE Class A Common Stock upon exercise of the warrants. The per-share exercise price for the warrants will be $132.18 per share. This is calculated by dividing the current $11.50 per-share exercise price of the former Redbox warrants by the Exchange Ratio. It is anticipated that the new public warrants will commence trading on the Nasdaq Global Market on or about Friday, August 12, 2022 under the symbol “CSSEL.”

 

About Redbox

Redbox Entertainment Inc. (pre-transaction symbol on NASDAQ: RDBX) is a leading entertainment company that gives consumers access to a large variety of content across digital and physical media. The company operates a rapidly growing digital streaming service that provides both ad-supported (AVOD) and paid movies from Hollywood studios and hundreds of content partners, as well as over 145 channels of free ad-supported streaming television (FAST). The Redbox app is available on major entertainment platforms that include Roku devices, connected TVs, gaming platforms, the web as well iOS and Android devices. Redbox also operates its popular kiosks across the US at thousands of retail locations – giving consumers affordable access to the latest in entertainment. The company produces, acquires, and distributes movies through its Redbox Entertainment™ label, providing rights to talent-led films that are distributed across Redbox’s digital and physical services as well as through third-party digital services. Headquartered just outside of Chicago, Redbox has offices in Los Angeles and Seattle. For more information, visit www.redbox.com.

 

Tuesday, August 30, 2022

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT ANNOUNCES ENHANCED SENIOR LEADERSHIP TEAM

Company creates a broader management structure that adds former Redbox leadership to support rapid growth and scale 

 

COS COB, Conn.– Chicken Soup for the Soul Entertainment’s (NASDAQ: CSSE) chairman and chief executive officer, William J. Rouhana, today announced the formation of a new senior leadership team drawn from both Chicken Soup for the Soul Entertainment and Redbox. As previously announced, entertainment and streaming industry veterans Galen C. Smith, executive vice chairman, and Jonathan Katz, president, will lead this team of executives across a number of areas to support the company’s rapid growth. Both Smith and Katz will report to Rouhana.

 

The Chicken Soup for the Soul Entertainment leadership team will consist of:

 

Galen Smith, executive vice chairman of Redbox and Chicken Soup for the Soul Entertainment, will oversee all long-term planning for the company, including strategy, mergers and acquisitions (M&A), and corporate services. Reporting to him:

 

Senior Vice President Corporate Communications, Peter Binazeski – Heads the company’s corporate communications and public relations; 
Chief People Officer, Marisa Famulare – Continues to direct all people functions;
Chief Innovation Officer, Jason Kwong – Shifts duties to newly expanded role incubating and developing future areas of growth for the combined business;
Chief Financial Officer, Chris Mitchell – Continues responsibility for all financial operations, capital structure, and investor relations;
Chief Strategy Officer, Elana Sofko – Continues to manage M&A activities and international expansion; and
Chief Legal Officer, Fred Stein – Expands his Redbox role to oversee all legal, business affairs and risk management. 

 

JJonathan Katz, president, will oversee day-to-day operations, including the company’s streaming, kiosk, distribution, and studio businesses. Reporting to him:

Chief Operating Officer and President, Redbox Service, Michael Chamberlain – Continues to oversee the operations of the Redbox kiosk business, and leads the growing kiosk service business;
Chief Executive Officer, Studios, David Ellender – Continues to lead the Chicken Soup for the Soul Television Group, developing and producing original content for all owned-and-operated platforms, now including Redbox kiosks and streaming, as well as third-party productions;
Chief Acquisitions & Distribution Officer, David Fannon – Continues to oversee all domestic and international content acquisition and distribution, expanding his purview to include Redbox, and continues in his role as President of Screen Media Ventures;
Chief Marketing Officer, Mike Feldner – Adds the combined company to his Redbox role, heading up all marketing, branding, and creative services, along with leading the company’s analytics and insights team;
Chief Revenue Officer, Philippe Guelton – Expands role to lead all advertising sales and operations, as well as revenue partnerships across the company; and 
Chief Digital Officer, Adam Mosam – Adds to his responsibilities oversight of the company’s streaming businesses, including product, technology, and platform distribution.

 

“Our new senior leadership team brings together some of the best executives in the streaming and entertainment business and sets us up for continued success,” said Bill Rouhana, chief executive officer and chairman, Chicken Soup for the Soul Entertainment. “Our company is scaling rapidly – especially after our recent acquisition of Redbox. As we continue to grow, this team has the knowledge, skill, and drive to build a major company that delivers premium entertainment to value-conscious consumers. I’m very excited about the future of Chicken Soup for the Soul Entertainment.”

Wednesday, May 18, 2022

Chicken Soup for the Soul Entertainment to Acquire Redbox, Creating Premier Independent Entertainment Company

Cos Cob, CT - Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), one of the largest operators of advertising-supported video-on-demand (AVOD) streaming services, and Redbox Entertainment Inc. (Nasdaq: RDBX), a leading entertainment company, have entered into a definitive agreement under which Chicken Soup for the Soul Entertainment will acquire Redbox. 

 

The combination of Chicken Soup for the Soul Entertainment and Redbox will create a leading independent, integrated direct-to-consumer media platform delivering premium entertainment for value conscious consumers. The combined company will have increased scale across content production and distribution, with a massive content library, more than 38,000 kiosks nationwide, extensive digital capabilities in AVOD, TVOD, PVOD, and FAST, and access to millions of targeted customers, including nearly 40 million Redbox Perks members.

 

Together, the combined companies will have the industry’s premier, independent AVOD platforms, one of the fastest growing segments of the overall entertainment industry. According to a recent study by IAB, ad spending on connected TV platforms increased 57% from 2020 to 2021 and is expected to increase another 39% this year. 

 

“Today marks a transformative moment for Chicken Soup for the Soul Entertainment and an inflection point for the ad-supported streaming industry,” said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “Our acquisition of Redbox will accelerate the scaling of our business as it combines complementary teams and services to create the streaming industry’s premier independent AVOD. Redbox has 40 million customers in its loyalty program and high-potential digital television assets including carriage of over 130 FAST digital channels on its Free Live TV platform, as well as a robust TVOD and PVOD platform. Together, we will build a fully developed AVOD and FAST streaming business: proven branded streaming services, formidable content and production capabilities, and a strong AVOD and FAST ad sales operation.”

 

“We believe that Chicken Soup for the Soul Entertainment is the ideal partner for Redbox. By joining forces, we will accelerate Redbox’s transition from a physical to high growth digital media company and be the only entertainment provider truly focused on value for consumers,” said Galen Smith, chief executive officer of Redbox. “This all-stock transaction provides Redbox stockholders with the opportunity to participate in the significant near- and long-term upside potential of a diversified and growing company with greater scale and resources. With our footprint of more than 38,000 kiosks, diverse content libraries and combined streaming platforms, we will be well positioned to deliver consumers a wealth of high-quality entertainment options.”

Rouhana continued, “More and more viewers are embracing ad-supported streaming offerings in a content environment characterized by cord-cutting and saturation of high-priced subscription services. Near term, these conditions are even more acute against a macro backdrop of rising inflation and economic uncertainty. With the combination of a large content library, digital AVOD and FAST channel capabilities, and an expanding global audience, we believe that we will be able to deliver more exciting premium entertainment for millions of value conscious viewers and drive further growth and value creation for our stockholders.”

 

About Redbox

Redbox Entertainment Inc. (NASDAQ: RDBX) is a leading entertainment company that gives consumers access to a large variety of content across digital and physical media. The company operates a rapidly growing digital streaming service that provides both ad supported (AVOD) and paid movies from Hollywood studios and hundreds of content partners, as well as over 130 channels of free ad supported streaming television (FAST). The Redbox app is available on major entertainment platforms that include Roku devices, connected TVs, gaming platforms, the web as well iOS and Android devices. Redbox also operates its popular kiosks across the US at thousands of retail locations – giving consumers affordable access to the latest in entertainment. The company produces, acquires, and distributes movies through its Redbox Entertainment™ label, providing rights to talent-led films that are distributed across Redbox’s digital and physical services as well as through third-party digital services. Headquartered just outside of Chicago, Redbox has offices in Los Angeles and Seattle. For more information, visit www.redbox.com.

Monday, May 16, 2022

Chicken Soup for the Soul Entertainment to Acquire Redbox, Creating Premier Independent Entertainment Company

Combination creates leading independent, integrated direct-to-consumer media platform 

delivering premium entertainment for value conscious consumers

 

Forms streaming industry’s premier independent AVOD platforms

 

COS COB, CT –Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), one of the largest operators of advertising-supported video-on-demand (AVOD) streaming services, and Redbox Entertainment Inc. (Nasdaq: RDBX), a leading entertainment company, have entered into a definitive agreement under which Chicken Soup for the Soul Entertainment will acquire Redbox. 

 

The combination of Chicken Soup for the Soul Entertainment and Redbox will create a leading independent, integrated direct-to-consumer media platform delivering premium entertainment for value conscious consumers. The combined company will have increased scale across content production and distribution, with a massive content library, more than 38,000 kiosks nationwide, extensive digital capabilities in AVOD, TVOD, PVOD, and FAST, and access to millions of targeted customers, including nearly 40 million Redbox Perks members.

 

Together, the combined companies will have the industry’s premier, independent AVOD platforms, one of the fastest growing segments of the overall entertainment industry. According to a recent study by IAB, ad spending on connected TV platforms increased 57% from 2020 to 2021 and is expected to increase another 39% this year. 

 

“Today marks a transformative moment for Chicken Soup for the Soul Entertainment and an inflection point for the ad-supported streaming industry,” said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “Our acquisition of Redbox will accelerate the scaling of our business as it combines complementary teams and services to create the streaming industry’s premier independent AVOD. Redbox has 40 million customers in its loyalty program and high-potential digital television assets including carriage of over 130 FAST digital channels on its Free Live TV platform, as well as a robust TVOD and PVOD platform. Together, we will build a fully developed AVOD and FAST streaming business: proven branded streaming services, formidable content and production capabilities, and a strong AVOD and FAST ad sales operation.”

 

“We believe that Chicken Soup for the Soul Entertainment is the ideal partner for Redbox. By joining forces, we will accelerate Redbox’s transition from a physical to high growth digital media company and be the only entertainment provider truly focused on value for consumers,” said Galen Smith, chief executive officer of Redbox. “This all-stock transaction provides Redbox stockholders with the opportunity to participate in the significant near- and long-term upside potential of a diversified and growing company with greater scale and resources. With our footprint of more than 38,000 kiosks, diverse content libraries and combined streaming platforms, we will be well positioned to deliver consumers a wealth of high-quality entertainment options.”

 

Rouhana continued, “More and more viewers are embracing ad-supported streaming offerings in a content environment characterized by cord-cutting and saturation of high-priced subscription services. Near term, these conditions are even more acute against a macro backdrop of rising inflation and economic uncertainty. With the combination of a large content library, digital AVOD and FAST channel capabilities, and an expanding global audience, we believe that we will be able to deliver more exciting premium entertainment for millions of value conscious viewers and drive further growth and value creation for our stockholders.”

 

Tuesday, March 15, 2022

Acquisition of 1091 Pictures Completed by Chicken Soup for the Soul Entertainment

COS COB, CT – Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) (“the Company”), one of the largest operators of streaming advertising-supported video-on-demand (“AVOD”) networks, today announced the closing of the previously announced acquisition of the assets of 1091 Media, LLC comprising its distribution business known as “1091 Pictures”. The purchase price was approximately $15.6 million in cash, Series A perpetual preferred stock and Class A common stock.

 

Salem Partners acted as the exclusive financial and investment banking advisor to 1091 Pictures, with Stephen Prough and Ivar Combrinck leading the process and negotiations. Lisa Weiss from Chatillon Weiss acted as exclusive legal advisor to 1091 Pictures. Brian Ross from Graubard Miller acted as exclusive legal advisor to Chicken Soup for the Soul Entertainment, Inc.

 

 

Tuesday, March 15, 2022

Definitive Agreement to Acquire 1091 Pictures Signed by Chicken Soup for the Soul Entertainment

1091 Pictures Has Distribution Rights to Approximately 4,000 Movies and Television Series, Nearly Doubling Chicken Soup for the Soul Entertainment’s Content Catalogue

 More Than 350 Titles Slated for 2022

 Acquisition of FAST and AVOD Streaming Channels with Approximately 1 Billion Yearly Ad Impressions

 

COS COB, CT –Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) (“the Company”), one of the largest operators of streaming advertising-supported video-on-demand (“AVOD”) networks, today announced the signing of a definitive agreement to acquire the assets of 1091 Media, LLC comprising its distribution business known as “1091 Pictures”. The purchase price is approximately $15.6 million in cash, Series A perpetual preferred stock and Class A common stock.

 

Acquiring 1091 Pictures accelerates Chicken Soup for the Soul Entertainment’s strategy to build the leading independent AVOD streaming service by approximately doubling the size of the Company’s content catalogue. 1091 Pictures’ diverse library of approximately 4,000 movies and TV series includes New York Times Critic’s Picks such as The Ghost of Peter Sellers and Grammy-Award Winner Linda Ronstadt: The Sound of My Voice, riveting sports stories such as A Kid from Coney Island executive produced by Kevin Durant and featuring Stephon Marbury, Red Bull’s The Dawn Wall, audience favorites such as The Last Blockbuster and Pharma Bro, groundbreaking documentaries such as Close Encounters of The Fifth Kind and The Phenomenon, which reveal the latest intelligence on UFOs, and indie film hits such as Academy Award Winner Taika Waititi’s Hunt for the Wilderpeople, Spirit Awards-winner Christine, and the knockout comedy The Overnight starring Adam Scott, Taylor Schilling and Jason Schwartzman. The acquisition also comes with established FAST and AVOD channels in specific verticals, with approximately 1 billion yearly ad impressions.

 

“The 1091 Pictures team transformed their large content library into a scalable, modern distribution platform with a compelling slate of channels that are a pragmatic addition to our existing assets,” said David Fannon, president of Screen Media Ventures, a Chicken Soup for the Soul Entertainment company and the supplier of content to the Crackle Plus streaming services. “There are great synergies between our two companies. Over time, joining 1091 Pictures’ acquisition and distribution team with Screen Media’s team, leveraging the impressive infrastructure 1091 Pictures built for digital fulfillment, and folding the 1091 Pictures-owned channel business into the Crackle Plus networks will make this a mutually beneficial and smooth transition. The 1091 Pictures’ pipeline of over 350 titles per year will provide a steady supply of new content to the company for years to come.”

 

“This is the next evolution in our content library strategy,” said Elana Sofko, chief strategy officer for Chicken Soup for the Soul Entertainment. “The genre content with loyal fan bases from 1091 Pictures includes music, over a dozen different sports, paranormal, and much more, enabling us to continue to grow both our streaming services and our FAST channels. We will also continue growing the business that the 1091 Pictures team started and augment it with additional opportunities from the combined catalogue.”

 

“We are thrilled to be joining forces with the Chicken Soup for the Soul Entertainment and Screen Media team,” said Eric Min, general manager and head of content for 1091 Pictures. “We are bullish that the scale and reach of the combined teams starts us on an exciting journey to be able to further capitalize on this strong amalgamation of assets.”

 

The company expects to recognize in excess of $10 million of revenue with approximately $3 million of incremental EBITDA in the next 12 months as a result of the transaction. The purchase price of $15,550,000 is comprised of $8 million in cash, $2 million in the form of newly issued shares of the Company’s Series A perpetual preferred stock (Nasdaq: CSSEP) valued at $25 per share, and 375,000 shares of Class A common stock (Nasdaq: CSSE) valued at $14.80 per share.

 

The acquisition is subject to satisfaction of certain closing conditions and is expected to close in early to mid-March 2022. Salem Partners acted as the exclusive financial and investment banking advisor to 1091 Pictures, with Ivar Combrinck leading the process and negotiations. Lisa Weiss from Chatillon Weiss acted as exclusive legal advisor to 1091 Pictures. Brian Ross from Graubard Miller acted as exclusive legal advisor to Chicken Soup for the Soul Entertainment, Inc.

Tuesday, March 15, 2022

Content-Rich Streaming Service Chicken Soup for the Soul to Feature Thousands of Hours of Television and Movies

New Streaming Service to Feature Exclusive Programming from Kin Community, Reel One, Chicken Soup for the Soul Originals, and the Sonar Library

 

COS COB, CT – Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE), one of the largest operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced that its free ad-supported Chicken Soup for the Soul streaming service AVOD will launch shortly with thousands of hours of family-friendly movies and television series including, feel-good movies, food, home and travel series, lifestyle and parenting shows. Hundreds of hours of exclusive content will be from Kin Community, Reel One, the Sonar library, and Chicken Soup for the Soul Originals. The Chicken Soup for the Soul streaming service is currently available as a FAST channel on Plex, FreeCast, Redbox, LG Channels, Stirr, XUMO, VIZIO’s free streaming service, WatchFree+, with the VOD launch of the service coming soon.

 

“When planning the launch of the Chicken Soup for the Soul AVOD streaming service, we set the bar very high,” said Jeff Meier, head of programming for Crackle Plus. “We exceeded our own expectations and are launching with a substantial amount of high-quality content with well-known stars and TV personalities that we believe will be the perfect fit for our audience.”

 

One of the new original series launches from Kin Community will be Comfort Kitchen hosted by Tia Mowry (Sister, Sister and Family Reunion) who will take viewers into her kitchen, teaching them to make all her favorite home-cooked recipes, with celebrity guests pitching in to chop, stir, and taste. New episodes of this series will premiere on the streaming service. Kin Community, a leader in celebrity-driven lifestyle programming, will also be providing hundreds of hours of lifestyle content on an AVOD exclusive basis such as All Things Adrienne with Adrienne Houghton (The Cheetah Girls, The Masked Singer), Hello Hunnay with Jeannie May (The Real), Side By Side with Malika (Sky High, ATL) and Khadijah (Sky High, Happy Feet), as well as many others.

 

“Tia Mowry's Comfort Kitchen is the perfect series to launch Kin's partnership with Chicken Soup for the Soul," said Michael Wayne, chief executive officer of Kin Community. "The combination of a world-class talent like Tia and Kin's premium lifestyle programming will help build meaningful audiences for Chicken Soup's new AVOD offering.”

 

On the scripted front, Chicken Soup for the Soul will feature original movies from Reel One Entertainment, a global production company that specializes in scripted dramatic content enjoyed by millions of viewers worldwide. These original titles will be premiering one per month and will be the first of a series of additional original scripted shows to be announced. Titles from Reel One Entertainment will include For the Love of Chocolate, Love Afloat, A Priceless Love, A Slice of Chicago Romance, Love for Starters, A Bouquet of Love, Love Map, A Snapshot of Forever, Love Amongst the Stars, The Beauty of Love, Love at the Ranch, and Love in Full Swing.

 

“The team from Reel One is enthusiastic to be working with the Chicken Soup for the Soul streaming service,” said Tom Berry, chief executive officer of Reel One Entertainment. “Their vibrantly loyal audience is a perfect fit for the fun and romantic themes our titles will represent as original content on their network. We’re so excited to play a part in the historic launch of this entertainment destination.”

 

Classic series and movies from the Sonar library such as Mothers and Daughters (Susan Sarandon, Sharon Stone, Courteney Cox, Christina Ricci, Selma Blair, Mira Sorvino), Morning Glory (Christopher Reeve, Deborah Raffin), My Boyfriend’s Back (Sandy Duncan, Jill Eikenberry, Judith Light), and more will be available on the streaming service. Chicken Soup for the Soul Entertainment acquired the Sonar library in April of 2021 and brought over 1400 hours of content composed of over 600 titles with 268 Emmy and 16 Golden Globe wins.

 

Chicken Soup for the Soul will bring home to its own streaming service Chicken Soup for the Soul Originals such as Hidden Heroes, Animal Tales, The New Americans, Project Dad, and Going From Broke executive produced with Ashton Kutcher. Premiering on AVOD on the streaming service will be the newest Chicken Soup for the Soul Original Smart Home Nation, produced by Efran Films in association with Chicken Soup for the Soul Entertainment and Parkside Entertainment, and hosted by Tanya Memme,

 

“The programming coming from Kin, Reel One and our Sonar library are great examples of the type of content fans can expect to see on Chicken Soup for the Soul’s streaming service,” said Philippe Guelton, president of Crackle Plus. “We’ve already started introducing the brand as a FAST channel and we’re launching a branded Chicken Soup “tray” on Crackle, to give fans easy access to the content as it rolls out wide with additional partners over the next few months.”

 

The Crackle Plus streaming services are currently distributed through 60 touch points in the U.S. on platforms including Amazon FireTV, RokuTV, Apple TV, Smart TVs (Samsung, LG, VIZIO), gaming consoles (PS4 and Xbox One), Plex, iOS and Android mobile devices and on desktops at Crackle.com, with previously announced plans to expand to over 80 touch points. Crackle is also available in approximately 500,000 hotel rooms in the Marriott Bonvoy chain.

 

Monday, January 3, 2022

Chicken Soup for the Soul Entertainment Increases Share Repurchase Authorization to $20 Million

Board Authorizes Additional $10 Million in Common Stock Repurchases in Addition to Previously Announced $10 Million Plan 

 COS COB, CT – Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), one of the largest operators of streaming advertising-supported video-on-demand (“AVOD”) networks, today announced that its board of directors approved of a $10 million increase in its common stock repurchase program, to a total of $20 million. 

 The initial $10 million authorization was approved in November 2021. As of December 17, 2021, the Company had repurchased 675,365 shares for approximately $9.8 million. The Company anticipates that any potential additional repurchase activity would be conducted opportunistically, in open-market transactions. 

 “Today’s increased authorization by the Board of Directors reflects confidence in the execution of our business plan, including the significant growth and expansion achieved in 2021. We are positioned to create significant shareholder value as we pursue our objective of building the best AVOD in a thriving streaming industry,” said Chris Mitchell, chief financial officer for Chicken Soup for the Soul Entertainment. 

Wednesday, November 10, 2021

Chicken Soup for the Soul Entertainment Reports Record Q3 2021 Results

Growth driven by increased distribution, expanded offerings of original, exclusive, and overall library of content and new user platforms 

 

Affirms 2021 revenue outlook

 

Board sets $10 million common stock repurchase authorization

 

COS COB, CT – Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) (the “Company”), one of the largest operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced its financial results for the third quarter ended September 30, 2021.

 

“We delivered a strong quarter that increases our confidence that we can meet our 2021 goals, with record all-time revenue and the second-best Adjusted EBITDA performance in our history,” said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “We are seeing momentum in our AVOD networks, highlighted by viewership growth at Crackle in Q3 and strong growth at Popcornflix since our September relaunch. This growth reflects our focus on expanding distribution of our networks and our lineup of original and exclusive content, including additional titles from the recently acquired Sonar assets, as well as our new technology platforms. With the initial launch of our highly anticipated Chicken Soup for the Soul streaming service, as well overall ad impression growth at Crackle Plus, consolidation of our television production activities, Screen Media’s growing lineup of acquired films, and our recent international partnership and acquisition activity, we are poised to accelerate execution of our strategy into 2022.” 

 

Third Quarter 2021 Financial Summary

 

  • Net revenue of $29.1 million, compared to $22.1 million in the second quarter of 2021, and $19.4 million in the year-ago period. The 50% year-over-year growth was driven by an increase in ad sales and licensing. Gross revenue for the third quarter was $29.6 million.
  • Net loss of $16.7 million compared to a net loss of $11.1 million in the second quarter of 2021, and a net loss of $13.0 million in the year-ago period; $14.5 million net loss before preferred dividends, compared to an $8.8 million net loss in the second quarter 2021 and a $12.0 million net loss in the year-ago period.
  • Adjusted EBITDA of $4.9 million compared to $3.2 million in the second quarter 2021, and $4.2 million in the year-ago period. Adjusted EBITDA growth was partially offset by investments in the Company’s recently launched technology platforms, marketing and employee compensation.

 

Recent Business Highlights 

 

  • Launched new free ad-supported streaming service, Chicken Soup for the Soul, which will use the beloved and internationally recognizable megabrand to bring its original mission of “Changing Your World One Story at a Time” to platforms around the world.
  • Announced the formation of the Chicken Soup for the Soul Television Group led by industry leader David Ellender, which consolidates TV production activities and will help capitalize on the global appeal of the brand.
  • Made significant progress on international growth strategy with the acquisition of a majority stake in Locomotive Global Inc., a production company based in India, and the signing of an international VOD agreement with Keshet Broadcasting, the largest broadcaster in Israel.
  • Increased Popcornflix’s viewership by 50% following the re-launch of its AVOD technology platform with a new user experience.
  • Grew original and exclusive content to a record 22% of total ad impressions, including the recently integrated Sonar content.
  • Sold out of ad inventory for the fourth quarter in a row and continued to drive advertising innovation by integrating ads with high-quality advertising partners.

 

Common Stock Repurchase Authorization

 

The Company’s Board of Directors today approved a two-year authorization for the repurchase of up to $10 million in Chicken Soup for the Soul Entertainment, Inc. common stock. The Company anticipates that any potential repurchase activity would be conducted opportunistically, in open-market transactions.

 

Third Quarter Financial Highlights

 

Gross profit for the quarter ended September 30, 2021, was $6.2 million, or 21% of net revenue, compared to $6.7 million in the second quarter of 2021, or 30% of net revenue, and compared to $4.5 million, or 23% of net revenue for the year-ago period. 

 

Operating loss for the quarter ended September 30, 2021, was $13.2 million compared to an operating loss of $7.8 million in the second quarter 2021, and $11.3 million in the year-ago period.

 

Net loss was $16.7 million, or $1.04 per share, compared to a net loss of $11.1 million, or $0.79 per share, in the second quarter 2021, and a net loss of $13.0 million, or $1.04 per share in the prior-year period. 

 

Adjusted EBITDA for the quarter ended September 30, 2021, was $4.9 million, compared to $3.2 million in the second quarter 2021, and $4.2 million in the same period last year. 

 

As of September 30, 2021, the company had $66.9 million of cash and cash equivalents compared to $14.7 million as of December 31, 2020, and outstanding debt net of deferred financing costs of $55.2 million as of September 30, 2021, compared to $39.8 million as of December 31, 2020. The company completed a common stock offering in July 2021 that raised gross proceeds of $75.0 million. 

 

For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see "Note Regarding Use of Non-GAAP Financial Measures" below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures.

 

The company presents non-GAAP measures such as Adjusted EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the company's operating performance.

 

 

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