Coinstar shares up modestly on deal to sell some kiosks
The Associated Press
NEW YORK — Coinstar shares rose modestly Tuesday on news that the company’s Redbox subsidiary reached a deal to sell some of its DVD rental kiosks that it bought from NCR last year.
As part of the sale, the Bellevue company licensed certain software and related patents purchased from NCR. Proceeds from the sales and the licenses are expected to total about $17.9 million, Coinstar said in a regulatory filing late Monday. The kiosks are being sold to third parties that were not named in the filing.
The deals are also expected to generate a tax benefit that will boost the company’s second-quarter profit by between 62 cents and 69 cents a share.
The deals are expected to close throughout the second and third quarters of 2013, Coinstar said.
Coinstar shares closed up 86 cents, or 1.5 percent, at $58.74 Tuesday, after peaking at $60.35 earlier in the day. Over the past 52 weeks, the company’s shares have traded between $40.50 and $71.82.