They only spent $100 million on the NCR deal with essentially froze out Blockbuster from the kiosk market since Blockbuster was leasing the kiosks from NCR...so in a brilliant move, CSTR simply bought all the kiosks from NCR and cut off Blockbuster's infrastructure. That is an example of how CSTR thinks. So the big question is, what will they do with the $350 million they just raised from the note offering? That's a big war chest. Sounds like they are preparing for a market move but so far no rumors as to what that might be.
Preventing a hostile takeover still doesn't prevent an acquisition bid by an outside corporation and the stock is still depressed in terms of fair value and a good strategic move. Interesting!
The story says CSTR bought back 12 percent of its stock in the past 7 months and with this new capital it will buy back more. That has already boosted the value of the stock and the additional buybacks should boost the price even more...and make things a bit difficult for short traders who may be forced to cover because of the technical increase in price that will result from the share buybacks.