Redbox Entertainment Inc (NASDAQ:RDBX) shares are extremely volatile on Wednesday. The stock is trading narrowly lower after initially falling more than 50% following a takeover announcement.
Redbox entered into a definitive agreement with Chicken Soup For The Soul Entertainment Inc (NASDAQ:CSSE) in which Chicken Soup For The Soul will acquire Redbox. Redbox shareholders will receive a fixed exchange ratio of 0.087 of a share of common stock of Chicken Soup for the Soul Entertainment per Redbox share.
Following the closing of the transaction, Chicken Soup For The Soul shareholders will own approximately 76.5% of the combined company and Redbox shareholders will own approximately 23.5%.
The transaction is expected to close in the second half of 2022. The business combination aims to create a leading independent, integrated direct-to-consumer media platform delivering premium entertainment for value conscious consumers.
RDBX Price Action: Redbox shares have been halted several times Wednesday morning. The stock traded down to $2 per share on the announcement before recovering significantly.
The stock was down 8.04% at $5.15 at time of publication.
Photo: courtesy of Redbox.