Wedbush Downgrades Redbox Shares, Citing Low CSSE Acquisition Price
Wedbush Securities downgraded Redbox shares to “neutral” from “outperform” in a Thursday note to investors, “given the acquisition price,” following Wednesday’s announcement that Chicken Soup for the Soul Entertainment (CSSE) plans to buy Redbox for about 65 cents a share…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
plus assumption of Redbox debt (see 2205110051). Redbox’s “post-IPO performance did not inspire confidence for its long-term potential, and the company faced bankruptcy without a significant cash infusion,” said analyst Michael Pachter. Wedbush believes CSSE can steer the company “in the right direction, capitalizing on Redbox’s 39 million loyalty members by marketing the combined company’s entire suite of digital offerings.” In addition to its DVD kiosks, Redbox has a digital on-demand service, transactional over-the-top video purchase and rental offerings, subscription VOD channels and ad-supported VOD and live TV services, he noted. The acquisition is expected to close in the second half.