Redbox shares plummet 35% post-acquisition news.

Redbox Shares Plummet 35% Post-Acquisition News

Redbox, the popular DVD rental kiosk company, has seen a significant drop in its share prices following the announcement of its acquisition by private equity firm Apollo Global Management. The news has sent shockwaves through the industry, with many investors questioning the future of the company.

The acquisition, which was announced on Monday, saw Apollo Global Management purchase Redbox for $1.6 billion. The deal is expected to close in the third quarter of 2021, subject to regulatory approval.

However, the news has not been well received by investors, with Redbox’s share prices plummeting by 35% in the days following the announcement. This has left many investors wondering whether the acquisition was a good move for the company.

Redbox has been struggling in recent years, with the rise of streaming services such as Netflix and Amazon Prime Video eating into its market share. The company has also faced increased competition from other DVD rental services, such as Blockbuster and Family Video.

The acquisition by Apollo Global Management is seen as a way for Redbox to stay competitive in the market. Apollo has a strong track record of turning around struggling companies, and many investors had hoped that the acquisition would lead to a resurgence in Redbox’s fortunes.

However, the drop in share prices suggests that investors are not convinced that the acquisition will be successful. Many are concerned that Apollo may struggle to turn around Redbox’s fortunes, given the challenges facing the DVD rental industry.

There are also concerns that the acquisition may lead to job losses at Redbox, as Apollo looks to cut costs and streamline the company’s operations. This has led to criticism from some quarters, with many arguing that the acquisition is bad news for Redbox’s employees.

Despite the concerns, there are still some who believe that the acquisition could be a positive move for Redbox. Apollo has a strong track record of investing in companies and helping them to grow, and there is hope that the private equity firm will be able to do the same for Redbox.

Only time will tell whether the acquisition will be successful, and whether Redbox will be able to compete in an increasingly crowded market. For now, investors will be watching closely to see how the company fares in the coming months.