Everything changed for the automated DVD-rental giant this week. With ambition and growth incentives both leading towards digitalization, Redbox (NASDAQ: RDBX) has successfully gone public as of Monday, sending the media stock soaring over 70% moving into their second day of trading.
It’s been a tedious journey for the Redbox team, with CEO Galen Smith stating he has been trying to take the company public since 2008. Rather than the often complex route of an IPO, Redbox made its transition to Redbox Entertainment after merging with the SPAC Seaport Global Acquisition Corp, trading under the RDBX ticker.
When it comes to the modern age of media, the times of physical DVD copies and media hardware are struggling with the increasing tide of digital offerings. Redbox’s public transition is a trademark move to establish a wider catchment.
Like Netflix and the rest of the online streaming monopolies – Redbox now has a chance to interact with the opportunities provided with an online landscape, such as subscription services, digital rentals, free TV, and further marketing potential – offering a clear direction for stakeholders and investors alike.
Redbox already has an incredibly loyal customer base. With that, we can expect the digital transition to be smooth, without the invasive competition of other streaming services. In Tuesday premarket trading, RDBX stock is sitting at gains of 65%, at a price of $19.60.
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