The stock price is up more than 8% at midday after the New York Post said that the owner of the Redbox DVD rental kiosks is talking about selling itself to “an undisclosed private-equity firm.” Coinstar has a market value of about $1.7B. Some may consider it a bargain at a price that’s less than 9 times its expected earnings — relatively low compared to most media and technology companies. So, is the report accurate? CEO Paul Davis sidestepped the question today in an appearance at Canaccord Genuity’s Global Growth Conference. “We have no idea where [the story] came from,” he said. “We’re not in the business of commenting on other people’s stories. We’re head down focused on running the business and we’re happy with the progress we’re making.” He remains bullish about the prospects for DVDs and Blu-ray discs. “We looked at the music industry and saw how long it took before digital actually overtook physical and it was much much longer than people had anticipated.” He added that the company wants to play in both worlds, which is why it’s preparing to launch its Redbox Instant by Verizon streaming service later this year. In addition the company is “looking at other products that we think over time can repurpose the Redbox kiosks.”
Coinstar Chief Ducks Question About Possible Sale As Shares Spike
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