Chicken Soup for the Soul Entertainment to buy Redbox for 69 cents/shr

Chicken Soup for The Soul Entertainment

11/05/2022 16:08

May 11 (Reuters) - Chicken Soup for the Soul Entertainment
Inc  CSSE.O  will buy Redbox Entertainment Inc  RDBX.O  in an
all-stock deal, the companies said on Wednesday, creating a
direct-to-consumer media platform.
    Redbox stock fell sharply after the deal was announced and
was last down 9.8% at $5, while Chicken Soup for the Soul
Entertainment's (CSSE) shares rose 1.7% to $8.05.
    Redbox shareholders will get 0.087 of a CSSE class A common
stock, or 69 cents, for each share held, based on CSSE's last
close. The implied per share offer is at a discount to Redbox's
last close of $5.60.
    Redbox in its annual report had flagged concerns about its
ability to continue as a going concern and was considering a
number of alternatives including restructuring options. (https://bit.ly/3wkvZQP)
    The combined company will retain the Chicken Soup for the
Soul Entertainment name and continue to trade on the New York
Stock Exchange under the ticker "CSSE".
    The deal, which includes a $15 million termination fee, is
expected to close in the second half of the year.

 (Reporting by Sohini Podder in Bengaluru)
 ((Sohini.Podder@thomsonreuters.com))