Coinstar is undervalued by Wall Street, opine industry analysts, and could be an enticing acquisition for a private equity firm. Coinstar CEO Paul Davis quickly dismissed such speculation with a terse comment:
“We are not in the business of commenting on other people’s stories . . . We’re head down, focused on running the business.”
B.Riley & Co. analyst Eric Wold weighed in with the following opinion:
“I’ve always viewed Coinstar as the acquirer, and if they were going to sell something to private equity that it might be the coin-counting business . . . But given the disrespect Coinstar has received from the market, it might be the only way to find value.”
Ever the Redbox cheerleader, Wold added the following:
“We continue to believe that Redbox is now dominating a rental segment that will see consumer demand for many years to come . . . We do not project that digital rental revenues will eclipse physical rentals for at least another 5-7 years, and by then Redbox will be a huge cash-generating machine.”
Would putting some or all of its business on the block be a good move for Coinstar?
[via Home Media Magazine]