RDBX - Why Redbox Stock Rallied 26% at the Open Today...No Really Why?
Shares of Redbox Entertainment (NASDAQ: RDBX) , probably best known for its DVD-dispensing video kiosks, rose a dramatic 26% in early trading on June 2. The interesting thing here is that the biggest news of late came out on May 11, when the company agreed to be acquired by video streaming and content company Chicken Soup for the Soul Entertainment (NASDAQ: CSSE) . The details of that deal are very important.
Redbox shareholders will receive 0.087 of a share of Chicken Soup for the Soul for every share of Redbox they own. When all is said and done, Chicken Soup for the Soul shareholders will own 76.5% of the combined company and Redbox shareholders will own 23.5%. This deal is almost certain to take place, as well, because stockholders owning roughly 86% of Redbox and holders controlling 91% of the voting rights for Chicken Soup for the Soul are supporting the acquisition.
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Why Redbox Stock Rallied 26% at the Open Today...No, Really, Why?