The Bellevue firm, which owns Coinstar and Redbox, has been struggling.
Outerwall will add three members to its board after signing an agreement with an activist investor, the Bellevue company said Tuesday.
Outerwall, best known for its Redbox DVD rental machines, will add Jeffrey Brown to its board immediately. Brown, CEO of Brown Equity Partners, was chosen by Engaged Capital, an activist investor in Outerwall that owns 14.6 percent of the company’s shares.
Two more board members chosen by Engaged Capital will also be added to Outerwall’s board by August. The board, which has eight members including Brown, will grow to no more than nine members total.
Outerwall has had a tough year as it faces increased competition from Netflix, Amazon Prime and other video-streaming services. The company, which also operates Coinstar and EcoATM machines, named a new CEO, Erik Prusch, last summer.
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Outerwall’s stock price has sunk about 40 percent over the past year. It rose $2.57, or 6.6 percent, to $41.61 Tuesday.
Engaged Capital has been pushing for Outerwall to try “strategic alternatives,” according to Reuters, even suggesting the company consider going private.
Outerwall will report first-quarter earnings on April 28 after the market closes.