EMV PCI ATM Industry essential guide

The stability of Redbox parent company Coinstar is in jeopardy, a recent New York Post article said.

Coinstar's CEO Paul Davis abruptly announced his departure earlier this month, along with the Starbucks veteran hired to lead the Rubi coffee kiosk effort, Ken Redding, also leaving the company. The executive shake-ups and a decline in stock prices have left investors concerned, the article reported.

The Post also reported that Coinstar rejected a takeover offer from Providence Equity Partners last summer, citing sources close to the situation. Davis persuaded the board to reject the proposal, arguing the company was worth more in light of its growth initiatives.

Davis' optimisim contradicts a recent Gabelli's report that projected Coinstar's EBITDA, or earnings before taxes, interest, depreciation and amortization, would fall five percent over the next four years, from $510 million, to $485 million in 2016, making the share price "extremely inexpensive."

We "believe the low valuation is driven by a fundamental underestimation of Redbox's longevity," the Gabelli report said.

Read more about DVD kiosks.

Related Content

User Comments – Give us your opinion!
Products & Services

Transitions Optical Interactive Merchandiser

http://global.networldalliance.com/new/images/products/Transitions_150.gif

3816/Transitions-Optical-Interactive-Merchandiser

CUSTOM's TG2480 - Compact kiosk printer

http://global.networldalliance.com/new/images/products/TG2480_100px.jpg

2196/CUSTOM-s-TG2480-Compact-kiosk-printer

Security Cabinets

http://global.networldalliance.com/new/images/products/4744.png

4744/Security-Cabinets

Roundy's Human Resource Employment Kiosk

http://global.networldalliance.com/new/images/products/roundys.gif

154/Roundy-s-Human-Resource-Employment-Kiosk

Retail Kiosk

http://global.networldalliance.com/new/images/products/6973.png

6973/Retail-Kiosk

EPSON M-T153 Series Thermal Printer Mechanisms

http://global.networldalliance.com/new/images/products/Telpar_Epson_M_T153.jpg

2408/EPSON-M-T153-Series-Thermal-Printer-Mechanisms

Automated Retail KIOSKS

http://global.networldalliance.com/new/images/products/4828.png

4828/Automated-Retail-KIOSKS

Virtual ReceptionKiosk Solution

http://global.networldalliance.com/new/images/products/3786.png

3786/Virtual-ReceptionKiosk-Solution

Education Kiosks

http://global.networldalliance.com/new/images/products/3790.png

3790/Education-Kiosks

Olea Metropolis Kiosk

http://global.networldalliance.com/new/images/products/4326.png

4326/Olea-Metropolis-Kiosk

Olea
Telpar
CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.
Ventus