Redbox Instant by Verizon (NYSE: VZ) could be in play for a possible sale after JANA Partners reported to the SEC that it acquired a 13.5 percent stake in Redbox parent Outerwall Inc. and wants the company to consider selling all or some of its assets. According to Bloomberg, JANA wants to see the joint venture, which has failed to provide much competition to Netflix (Nasdaq: NFLX), sold, spun off or shut down.
Outerwall, formerly known as Coinstar, is undervalued, JANA said in its regulatory filing. JANA said it plans to discuss the prospect of selling or discontinuing some businesses with Outerwall's board and management.
Wedbush Securities analyst Michael Pachter told Bloomberg he expects other shareholders to join JANA in pushing Outerwall's management to focus on giving more cash to shareholders.
Outerwall said it welcomes shareholders' opinions and that its board regularly reviews the company's strategic priorities. "We are committed to driving value for all Outerwall shareholders and will continue to take actions to achieve this important objective," it said.
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