We are investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Redbox Entertainment Inc. (“Redbox” or the “Company”) (NASDAQ: RDBX) in connection with the proposed acquisition of the Company by Chicken Soup for the Soul Entertainment, Inc. (NASDAQ: CSSE). Under the terms of the merger agreement, the Company’s shareholders will receive a fixed exchange ratio of 0.087 of a share of class A common stock of CSSE per Redbox share owned. Upon completion of the transaction, CSSE shareholders will own approximately 76.5% of the combined company, while Redbox shareholders will own only approximately 23.5% of the combined company.
Weiss Law is investigating whether (i) Redbox’s board of directors acted in the best interests of Company shareholders in agreeing to the proposed transaction, (ii) the per-share merger consideration adequately compensates Redbox’s shareholders, and (iii) all information regarding the sales process and valuation of the transaction will be fully and fairly disclosed.