Outerwall (NASDAQ:OUTR) began trading on Tuesday, but it wasn't an IPO. This is the newly rechristened kiosk operator that investors have known as Coinstar for years.
Coinstar's namesake machines exchange coins for merchant gift cards, and its larger Redbox business rents out DVDs, Blu-rays, and video games at cheap nightly rates. The transformation to Outerwall isn't just a matter of slapping on a new corporate moniker. Outerwall also announced on Tuesday that it's acquiring ecoATM.
Outerwall already had a 23% stake in the automated kiosks that pay cash for smartphones, tablets, and iPods. The machines can assess the condition of the device being submitted and fires back its best offer. This should be a great way for the company to offset the slowdown in its once-growing Redbox business. It's also one that can't be pushed toward obsolescence as media distribution goes digital. Consumers still need to hardware to make it happen, and along comes ecoATM to give consumers an easy way to unload their older gadgetry.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- lululemon athletica's (NASDAQ:LULU) founder is trimming his stake in the yoga-apparel retailer, weeks after the surprise resignation of its CEO. Maybe it wasn't just the flawed Luon stretch pants that were too transparent.
- Tesla Motors (NASDAQ:TSLA) raced to yet another all-time high this week. The electric-car maker revealed that it has received hundreds of orders for its flagship Model S sedan in Hong Kong.
- General Motors (NYSE:GM) isn't laying off the gas in its turnaround. Making progress in its long haul back from bankruptcy, the leading automaker posted a 6% sales spike in June, with all four brands posting gains at the retail level. Analysts were holding out for just a mere 2% uptick in sales.