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Coinstar To Buy Back $50M In Stock

Posted On: 2/18/2011

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Coinstar Inc., vending machine, vending business, kiosk, coin-counting kiosk, Redbox Morgan Stanley

BELLEVUE, WA -- Coinstar Inc. announced on Feb. 15 that it will buy back $50 million of its common stock from Morgan Stanley. The repurchase is part of a buyback worth up to $74.5 million that the company's board approved earlier.

The quantity of shares that the owner and operator of Redbox DVD rental kiosks and coin-counting machines buys back will be based on average prices over a period that analysts say could extend from mid-March at the earliest to mid-May at the latest. By reducing the number of shares on the market, the stock buyback could boost the value of the company's remaining shares.

Earlier this month, Coinstar Inc., which also operates self-service coin-counting machines, reported lower-than-expected fourth quarter results. Officials cited disappointing sales from its Redbox kiosks as a result of a 28-delay of new movie releases. Its guidance for the current quarter also fell short of Wall Street forecasts. | SEE STORY