Redbox Parent Sees Lift in Stock on Search for Strategic Alternative
The company also said Monday that it doubled its quarterly dividend to 60 cents per share from 30 cents previously.
Shares of Outerwall, the parent of the Redbox DVD and video game kiosks, surged 11 percent in after-hours trading Monday after the company said it is exploring strategic and financial alternatives that could include an outright sale of the company.
The company also said that it doubled its quarterly dividend to 60 cents per share from 30 cents previously.
Outerwall disclosed Monday that it has hired Morgan Stanley as its financial adviser in its quest to explore a sale or other initiatives designed to boost the stock while Perkins Coie is its legal adviser.
Shares of Outerwall advanced 1 percent to $34.39 during regular trading on Monday, leaving it with a market capitalization of $571.4 million. Outerwall shares, though, have been cut in half in the past year.
Outerwall is also the company behind Coinstar, which consumers use to exchange large amounts of coins for paper money, and the search for "alternatives" could conceivably result in a separation of Coinstar from Redbox.
Outerwall recently reported that movie rentals at Redbox fell 24 percent in the fourth quarter to slightly less than 136 million as consumers moved further away from physical product in favor of online streaming.
Redbox, though, remained the larger business, as its revenue of $407 million in the fourth quarter dwarfed that of Coinstar, which saw revenue rise 2 percent to $83.3 million.
Email: [email protected]