News

Coinstar mum on rumors of possible sale

August 17, 2012

Speculation continues on a possible sell-off of Redbox parent company Coinstar. The New York Post broke the story earlier this week, and shares of Coinstar Inc. rose as much as 10 percent the following day.

Coinstar has been in discussions with an undisclosed private equity firm for several months, the newspaper reported, and the talks are heating up. The Post cites unnamed sources, but both Redbox and Coinstar refuse to comment on the rumors.

Analysts following the possible sale say the actuality of a deal is murky, given Coinstar's future growth prospects.

"We continue to believe that Redbox is now dominating a rental segment that will see consumer demand for many years to come," B. Riley & Co analyst Eric Wold told Reuters.

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