After so much negotiation, the owner of Coinstar cash-exchange kiosks and Redbox DVD rentals, Outerwall Inc, has reached an agreement to sell its business to an equity giant, Apollo Global Management. The asset has been valued at exactly $1.6 billion.

With this deal, the company’s share value has received a 51 percent increase to the new price of $52 per share. The new price is a massive increase from its closing price in March 14. This was before the company’s board of directors began to find a way to reverse the falling profitability of the company.

The acquisition will allow Outerwall to rejig its kiosk business strategies under the supervision of its new owner. The deal became a necessity after a drastic drop in the company’s revenue resulted in the drop of its share price all through 2015.

The continuous slump put the company under intense pressure from one of its investors – Glenn Welling. This led to the absorption of three directors in April as a form of settlement. The billed takeover pushed up the value of Outerwall’s share by 12 percent to $52.34 in the morning in New York. This brings the total increase in the share value this year to 28 percent.

Meanwhile, the company is expected to present its second quarter report on Thursday and conference call has been completely ruled out. However, in spite of the increase in its share value, sales are expected to drop by about 11 percent to $1.96 billion.

The major challenge with the business is how to cope with stiff competition from streaming-video downloads that has affected its sales badly. This is the first hurdle the new owner has to cross for the fortune of the company to be turned around.

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