Chicken Soup for the Soul to buy Redbox at discount

Chicken Soup for The Soul Entertainment

11/05/2022 15:54

** Shares of DVD kiosks and video streaming co Redbox
Entertainment Inc  RDBX.O  fall 30% to $3.90 
    ** Entertainment co Chicken Soup for the Soul Entertainment
 CSSE.O  said it will buy Redbox in an all-stock deal, wherein
Redbox stockholders will own ~23.5% of combined co, while CSSE
will hold the rest  urn:newsml:reuters.com:*:nGNX4lfzKw
    ** The all-stock offer implies an offer price of ~69 cents
for RDBX and implies a discount of ~88% to RDBX's last close
    ** RDBX, which went public through a SPAC merger last year,
has declined ~80% since its peak in October
    ** The combined co will trade under the ticker "CSSE" 
    ** CSSE says co will deliver more than $40 million in
annual-run rate cost savings in 2023
    ** CSSE is up 4.5% at $8.28


 (Reporting by Chavi Mehta in Bengaluru)
 ((Chavi.Mehta@thomsonreuters.com;))