Chicken Soup for the Soul Entertainment (CSSE) is acquiring Redbox Entertainment (RDBX) for $375 million, Forbes reports.

The all-stock deal is comprised of $50 million of Chicken Soup stock and the assumption of $325 million of Redbox debt, leaving Chicken Soup shareholders with a 76.5% stake in the DVD kiosk company, and shareholders of the target, with a 23.5% stake.

Appollo Global Management, the majority owner of Redbox, which acquired it as part of its $1.6 billion acquisition of Outerwall in 2016, will own approximately 15% of Chicken Soup for the Soul Entertainment once the deal is completed.

Redbox Entertainment's 38,000 DVD rental kiosks throughout U.S. supermarkets and convenience stores generated more than $850 million in revenues and $200 million in cash flows before COVID — but in 2021, sales had dwindled to $289 million and cash flow was negative $15 million.

A special purpose acquisition company (SPAC) deal for Redbox came in 2021 worth a total of $195 million — $145 million in cash, and private investment in public equity (PIPE) commitments of $50 million. Unfortunately, Redbox shares declined from $10 at the time to under $2 recently.

Chicken Soup is operated by former telecom exec William Rouhana Jr., who ran broadband company WinStar in the dotcom boom of the late 1990s.