RDBX - Redbox plummets as takeover terms undercut present share price

Redbox Entertainment (NASDAQ:RDBX) is marking another big swing on Wednesday as its tie-up with Chicken Soup for the Soul (NASDAQ:CSSE) leaves shareholders feeling sick. The two firms announced an agreement on Wednesday morning whereby Redbox stockholders 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. Following the approximately $335 million deal’s close, Chicken Soup for the Soul Entertainment (CSSE -7.7%) shareholders will own 76.5% of the new firm, while Redbox (RDBX -35.0%) shareholders would own the remaining 23.5%.  At current share prices, RedBox (RDBX) implied share price is about $0.65. Chicken Soup for the Soul (CSSE) is also set to assume Redbox’s (RDBX) debt under the terms of the deal. “Redbox’s post- IPO performance did not inspire confidence for its long-term potential, and the company faced bankruptcy without a significant cash infusion,” a

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Redbox plummets as takeover terms undercut present share price