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Tuesday, March 19, 2024
March 19, 2024

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Outerwall names new CEO amid 2Q losses

The Columbian
Published:

SEATTLE — Bellevue-based Outerwall has named Erik Prusch, the former president and CEO of Clearwire, as its newest chief executive.

Outerwall, known for its Redbox movie rental and Coinstar kiosks, has been without a permanent CEO since January.

The company’s stock price plunged 13.4 percent Friday to about $70.82, after reporting a $45.6 million loss on $545.4 million in revenue in its second-quarter earnings report. The company announced it would take an $85.9 million writedown on goodwill from its EcoATM kiosk business, whose revenue did not meet its expectations.

Outerwall’s business has struggled in recent years with competition from streaming movie services such as the booming Netflix. The growth of those services gives consumers less and less reason to rent DVDs from Redbox.

Outerwall’s former CEO, J. Scott Di Valerio, stepped down in January after being in the position for slightly less than two years. The company’s stock reacted badly then as well, dropping more than 20 percent after the news.

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