Stocks

Redbox to go public via SPAC

Redbox, a DVD kiosk company is going public via SPAC merger with Seaport Global Acquisition Corp, valued at around $700 million. The ticker will be RDBX.

Redbox has been able to compete successfully against Netflix, Disney Plus, HBO Max, and all of the other mammoth streaming services that rely on set-top boxes, new TVs, and reliable internet to work. Around 70% of Redbox’s users are considered “late adopters,” according to the company.

According to Variety, Redbox intends to utilize the proceeds from the IPO to pay down debt and expand its VOD offerings. With only 40,000 kiosks and 39 million users, it will have to expand quickly to stay up with its competitors. Disney Plus has almost 100 million subscribers since its inception in 2019. Netflix, which Redbox began as a competitor to in 2002, now has a user base of over 200 million people.