Outerwall CEO Scott Di Valerio Resigns, Stock Plummets

Outerwall, parent company of DVD kiosk operator Redbox, said that Scott Di Valerio has stepped down as CEO and resigned from the board — pushing the stock down more than 11% in pre-market trading.

The company named Nora Denzel, a member of Outerwall’s board since 2013, as interim chief executive officer and said it would commence a search for a permanent CEO immediately. The company also disclosed that it currently expects low single-digit revenue growth for full-year 2015.

Di Valerio was appointed Outerwall CEO in April 2013, and previously had served as CFO since 2010. He stepped down as chief executive on Jan. 18 and resigned from the board effective Jan. 19, according to a company regulatory filing.

“To accelerate the progress we are making, the board believes that now is the right time for a leadership change,” Outerwall chairman Nelson Chan said in a statement. “Outerwall continues to capitalize on its market-leading brands to drive profitability and deliver value for shareholders, partners and customers.”

[UPDATE, 1:30 p.m. PT: Outerwall shares closed down 20.2% for the day, to $62.05 per share.]

The company’s Redbox unit last month raised the daily rental prices of DVDs and Blu-ray Discs, which Outerwall said would have an “adverse impact” on rental volumes — and analysts predicted could shift market share away from Redbox. As of Dec. 2, 2014, the daily rental rate for DVDs increased from $1.20 to $1.50, and the daily rental rate for a Blu-ray Disc will increase from $1.50 to $2. Redbox raised rates after a series of renewals with studios for DVD rentals.

That came after Outerwall and Verizon in October pulled the plug on their joint streaming venture, Redbox Instant by Verizon, after it failed to gain traction.

On Tuesday, Outerwall said it currently expects consolidated revenue for the fourth quarter of 2014 to be approximately $598 million to $602 million, with adjusted earnings from continuing operations expected to be approximately $140 million to $142 million.

Outerwall is slated to report Q4 2014 results on Feb. 5, 2015, after market close.

Bellevue, Wash.-based Outerwall, in addition to its network of Redbox movie and game rental kiosks at 35,000 locations, also operates Coinstar money kiosks and ecoATM electronics recycling kiosks.

More Digital

  • Asian Streamer Iflix Completes $50 Million

    Asian Streamer Iflix Completes $50 Million Fund Raising

    Asia-based streaming firm Iflix has completed its latest funding round by bringing in major institutional investor Fidelity. The company says it is now looking towards an IPO. Iflix, which has operations across 12 countries in Asia, says that the funding cycle brought in “well in excess of $50 million,” but provided few new details. Other [...]

  • Once Upon a Time in Hollywood

    ‘Once Upon a Time in Hollywood’ Tops Studios’ TV Ad Spending

    In this week’s edition of the Variety Movie Commercial Tracker, powered by the always-on TV ad measurement and attribution company iSpot.tv, Columbia Pictures claims the top spot in spending with “Once Upon a Time in Hollywood.” Ads placed for the drama had an estimated media value of $5.71 million through Sunday for 997 national ad [...]

  • Department of Justice

    DOJ Announces Antitrust Review of Tech Giants

    In a move that could potentially disrupt Silicon Valley’s biggest companies, the U.S. Justice Department announced that its antitrust division opened a review into “whether and how market-leading online platforms have achieved market power.” The DOJ, in its announcement Tuesday, didn’t identify which companies it is looking into as part of the investigation. Facebook, Amazon, Google [...]

  • Snap Inc

    Snap Stock Skyrockets as Company Adds 13 Million Daily Active Users in Q2

    Share prices for Snapchat’s corporate parent Snap Inc. shot up as much as 13% in after-hours trading Tuesday on news that Snapchat added 13 million daily active users in Q2 of 2019. The service ended the quarter with 203 million users, compared to 190 million at the end of Q1, and 188 million in Q2 [...]

  • jbl link bar

    JBL Finally Releases Its Android TV-powered Smart Sound Bar

    Over a year after first announcing it, Samsung subsidiary Harman is finally releasing its JBL Link Bar, a smart sound bar that comes with Android TV built-in. The new device effectively doubles as a smart speaker, and does away with the need for any additional streaming devices. Google and Harman / JBL first announced the [...]

  • Inverse-BDG

    Bustle Digital Buys Digital-Media Startup Inverse, Its Eighth Acquisition to Date

    Bustle Digital Group, continuing its strategy of snapping up smaller digital-media players, has acquired Inverse, geared toward an young-male audience with content about science, tech and culture. Terms of the deal weren’t disclosed. BDG founder and CEO Bryan Goldberg is well-acquainted with Inverse, which was founded in 2015 by CEO Dave Nemetz — who previously [...]

  • Pandora voice mode

    Pandora Launches Voice Mode for Everyone

    After first launching a limited beta earlier this year, Pandora opened up its mobile voice control to all of its iOS and Android users Tuesday. The new feature allows users to ask for songs, albums, playlists, stations, and even soundtracks for activities or times of day, with simple voice commands. Pandora’s voice mode is similar [...]

More From Our Brands

Access exclusive content