Coinstar’s entertainment services business goes to NEN

Coinstar Inc, which provides coin-counting machines and DVD rental kiosks, said it sold its entertainment services business to National Entertainment Network Inc for a "nominal consideration" as it looks to focus on its core businesses.

The company expects to record a pre-tax loss of $52 million to $57 million and realize a one-time tax benefit of between $82 million and $87 million from the sale.

Separately, Coinstar, which provides DVD rental kiosks through its unit Redbox Automated Retail LLC, said it is publicly offering $175 million of convertible senior notes due 2014 and will use the proceeds to repay debt.

Coinstar shares were down about 3 percent at $31.10 in trading after the bell. They closed at $31.96 Wednesday on Nasdaq.

Source: Reuters