Monday, February 22, 2016
EcoATM Targeted By Outerwall Investor Group, Seeking Sale Or Shutdown
San Diego-based cell phone recycling kiosk operator ecoATM, which is owned by Outerwall, is being targeted by an investor group which wants Outerwall to shut down or sell off ecoATM--as well as other assets. According to Engaged Capital LLC, it believes Outerwall's current management have impaired the valuation of the company, and is demanding that Outerwall "shut down or sell" ecoATM, among other moves. Engaged Capital wants Outerwall to discontinue its share repurchases and to seek "strategic alternatives" to the rest of Outerwall's business, including outright sale of the entire company. ecoATM, which is still based in San Diego, was acquired by Outerwall in July of 2013 for $350M, by Outerwall subsidiary Coinstar. Outerwall also owns Coinstar and Redbox.