Coinstar Inc, owner of redbox, is buying NCR Corp's Blockbuster-branded DVD kiosks.
"Through the sale of the assets and the corresponding services agreement, NCR will be better positioned to focus on growing our business in our targeted industries, while strengthening our global services and support," said Jeff Dudash of NCR. "Additionally, this transaction gives us the opportunity to develop a long-term strategic relationship with a pioneer and leader in automated retail."
Coinstar agreed to purchase NCR's DVD kiosks, which could be about 10,000 machines, for as much as $100 million, Dudash said. The agreement includes a supplier arrangement where Coinstar will purchase product and services from NCR.
Coinstar also announced earlier today its joint venture with Verizon Communications Inc. to offer video streaming and DVD rental from redbox's 35,400 kiosks.
Last week, the company rejected Time Warner Inc.'s demand that it wait 56 days before renting new releases from Warner Bros. Coinstar said it will get the videos from third-party suppliers and make them available as soon as they go on sale.
Coinstar announced today that its fourth-quarter profits more than doubled. Net income jumped to $31.5 million, or $1 a share, from $11.7 million, or 35 cents a share, a year earlier, which included a loss from discontinued operations. Analysts projected 65 cents a share. Sales rose 33 percent to $520.5 million, beating estimates of $498 million.
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Cherryh Butler has been a reporter for nearly 10 years, writing on a variety of topics ranging from the restaurant industry to business and health and fitness news. Before joining FastCasual.com as editor, she oversaw KioskMarketplace.com and PizzaMarketplace.com and contributed to RetailCustomerExperience.com. She's also written for several daily newspapers, magazines and websites, including The Kansas City Star and American Fitness magazine.