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| Company type | Public |
|---|---|
| Expert Market: CSSEQ | |
| Industry | Entertainment |
| Founded | June 9, 2016; 9 years ago (2016-06-09)[1] |
| Founders | William J. Rouhana, Jr. |
| Defunct | July 10, 2024; 19 months ago (2024-07-10) |
| Fate | Chapter 7 bankruptcy liquidation |
| Headquarters | Cos Cob,Connecticut, U.S. |
Area served | Worldwide |
| Parent | Chicken Soup for the Soul |
| Subsidiaries |
|
Chicken Soup for the Soul Entertainment, Inc. was an American media company based inCos Cob, Connecticut. Established in 2016,[1] it was a subsidiary of the publisherChicken Soup for the Soul.
In 2008, the founders ofChicken Soup for the Soul,Jack Canfield andMark Victor Hansen, sold the company to a group led by William J. Rouhana and Robert D. Jacobs.[2]
In 2013, the company announced plans to produce a television series and a film withAlcon Entertainment. Chicken Soup for the Soul produced television programming with other partners, includingPBS.[3] In 2016, Chicken Soup for the Soul acquired a majority stake in the websiteA Plus.[4]
Chicken Soup for the Soul Entertainment went public in 2017.[5] In November 2017, it acquiredScreen Media Ventures, LLC, an independent television and film distribution company, which includedPopcornflix, an ad-based online video service.[6][7]
On March 28, 2019,Sony Pictures Television announced that it would sell a majority stake ofSony Crackle to Chicken Soup for the Soul Entertainment, after which the service would revert to the "Crackle" name.[8][9]
On November 5, 2019, it was announced that the Chicken Soup for the Soul Entertainment division would purchase foreign sales company Foresight Unlimited for the new Screen Media division.[10]
On December 15, 2020, Sony traded its remaining shares in Crackle for a yet to be disclosed preferential stake in Chicken Soup for the Soul Entertainment, giving them full control of the ad-supported streaming service.[11]
In April 2021, Chicken Soup for the Soul acquired the film and television catalogue ofSonar Entertainment. In return, Sonar will hold a 5 percent stake in a new AVOD network featuring its library.[12] Through the acquisition, Chicken Soup now currently owns the North American rights to a majority of theLaurel & Hardy films and shorts, and most of theOur Gang library, as well as the holdings of the former RHI/Hallmark/Cabin Fever/Sonar outputs, and a majority of theHal Roach library, all via theirHalcyon Studios division.[citation needed]
On March 2, 2022, Chicken Soup for the Soul Entertainment announced its acquisition of specialty film distributor,1091 Pictures, for $15.55 million, in a mix of cash ($8 million) and stock (newly issued Series A preferred stock and Class A common stock). The deal included an estimated 4,000 movies and TV series from the 1091 catalog, as well as its portfolio of free, ad-supported networks and channels.[13]
On May 11, 2022, Chicken Soup for the Soul Entertainment announced its intention to acquireRedbox for $357 million ($36 million in stock and $321 million in assumed debt).[14] The acquisition closed on August 11, 2022.[15]
On April 1, 2024, Chicken Soup for the Soul Entertainment received a delisting notice from Nasdaq, informing that the company's stock would be delisted from the Nasdaq after it had 180 days to return to compliance.[16]
On April 23, 2024, Chicken Soup for the Soul Entertainment announced a $636.6 million loss in 2023, and warned that without any options to generate additional financing, the company may be forced to liquidate or pause operations, and seek a potentialChapter 11 bankruptcy protection filing.[17] In June 2024, chairman and CEO Bill Rouhana removed the company's board of directors.[18] On June 29, the company filed for Chapter 11 bankruptcy protection after cutting benefits in May, missing a week of paying its employees, and failing to secure financing.[19][20][21]
On July 1, 2024, former federal prosecutor Bart Schwartz replaced Rouhana as CEO, and a new board of directors was installed.[22] On July 5, the company was able to secure funding to restore payroll and benefits.[23]
On July 10, 2024, a bankruptcy judge ordered Chicken Soup for the Soul Entertainment's Chapter 11 bankruptcy to be converted into aChapter 7 bankruptcy liquidation after accusing Rouhana of misusing the business and failing to pay employees or support healthcare. With the Chapter 7 conversion, the company's assets would be liquidated, resulting in the cessation of its subsidiaries, includingCrackle,Popcornflix,Redbox andScreen Media. In addition, over 1,000 employees were laid off and over 26,000 Redbox kiosks were shut down permanently.[24][25]
On April 7, 2025, a bankruptcy auction was set for April 23.[26] CSSE's liquidation was completed by June 2025.