Engaged Capital Makes Headlines with Activist Campaign at Outerwall
The Wall Street Journal, Variety, Reuters, CNBC, Bloomberg and other media sources have reported on the activist campaign of Olshan client Engaged Capital at Outerwall Inc. (OUTR), an American company with a network of movie and game rental kiosks as well as coin-cashing machines. Engaged Capital outlined its concerns regarding the governance and management of OUTR’s assets and recommends a series of immediate actions for sustainable value creation. Engaged Capital believes that OUTR’s underperformance and current depressed valuation is a direct result of the current board’s failed strategies, flawed capital allocation policies and misaligned governance. The highlights of the plan and presentation include: to cease all growth investments; manage both Redbox and Coinstar for cash; sell or shut down the ecoATM business; halt OUTR’s share repurchase program; use the majority of free cash flow to pay a large annual dividend and reduce debt; and immediately begin a sale process with the goal of taking OUTR private. Steve Wolosky and Ryan Nebel represent Engaged Capital in connection with its activist campaign at OUTR.