however reading on company "Redbox shares were down 40% in recent trading.
Redbox shareholders on Tuesday approved the company's acquisition by Chicken Soup for the Soul Entertainment." in August.
You would think Netflix getting out of the business should be a sign for shares to go up. Maybe they're not that profitable either.
Investors don't care about profit of the business, they care about profit of their investment (ROI). Whether a company is profitable or bleeding money only matters as part of the prediction on where the share price will go.
Netflix IPOed in 2002 and Redbox's parent company is a penny stock (Chicken Soup of the Soul Entertainment // NASDAQ: CSSE)
VCs do not invest in public entities.
The companies that invest in public entities are Investment Banks and Private Equity, both of which are different industries with different norms and regulations from Venture Capital
A massively corp with many experienced analysts considers a market no longer capable of producing a profit... to me that is a sign that the sector is dying.
There's probably a [small] steady-state business in there, but investors want growth.