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Coinstar in Sale Talks?

Is there a “for sale” sign sitting out in Coinstar’s yard? Redbox’s parent company is in “intense” talks with a private equity firm, according to The New York Post.

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]

2 Responses to “Coinstar in Sale Talks?”

  1. Visitor [Join Now]
    Firstlawofnature [visitor]

    All depends on price.

  2. Member [Join Now]
    DiverGirl007 [divergirl007]

    Sell off the coin counting as this is available free in many banks (even for non-customers) or change it to be a donation station to individuals choice of non-profit recipient. Give the customer the option of coin counting for themselves, for a fee of course, OR donate entire amount to a not for profit organization. It would be a great PR tool.

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