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Redbox Stock Is Worth About 45 Cents, It’s Trading Over $2

  • Shares trading nearly 500% above value in Chicken Soup deal
  • At current levels, investors will lose money by owning Redbox
Updated on

Redbox Entertainment Inc. shares are trading nearly 500% higher than they should be based on the terms of the company’s sale to Chicken Soup for the Soul Entertainment Inc., causing investors to wonder why buyers are lining up to lose money.

Shareholders of the movies-to-rent streaming service provider will receive 0.087 of Chicken Soup’s Class A common stock for each Redbox share they own, according to deal terms. With Chicken Soup trading at $5.21, Redbox stock is worth roughly 45 cents. It closed at $2.68 on Thursday.