September 9, 2009 / 10:13 PM / 10 years ago

UPDATE 1-Coinstar sells entertainment services business

* Says received “nominal consideration”

* Expects to record pre-tax loss of $52 mln to $57 mln

* Sees Q3 net gain of $25 mln to $35 mln

* To offer $175 mln convertible senior notes due 2014 * Shares down 3 pct

Sept 9 (Reuters) - Coinstar Inc (CSTR.O), 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.

For the related alerts, double-click [ID:nWNAB7990] [ID:nWNAB7995] (Reporting by Deepti Govind in Bangalore; Editing by Deepak Kannan)

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