Scalper1 News
Outerwall parent of the Redbox DVD rental business, saw its shares jump 12% on Friday. It wasn’t because people suddenly started renting a lot more movies from its grocery store vending machines. Instead, the Bellevue, Wash.-based company announced a plan to greatly increase its stock buy-back program, which will raise per-share earnings. Outerwall said it intends to purchase $350 million of the company’s common stock through a modified Dutch auction tender offer. If the tender offer is fully subscribed and completed, Outerwall (OUTR) will have repurchased $555 million of its common stock since February 2013, the company said in a press release. “In addition to providing a return of capital to stockholders, this buyback reflects our confidence in the company,” Outerwall CEO Scott Di Valerio said in a statement. “We remain enthusiastic about the future of Outerwall, as we continue driving profitable growth through our core Redbox and Coinstar businesses… Scalper1 News
Scalper1 News