Dish Network buys Blockbuster for $320mn

[onehandle]

Source: AFP

NEW YORK (AFP) – The once-dominant US video chain Blockbuster was sold at auction to satellite TV chain Dish Network for just $320 million Wednesday after mismanagement and on-line competition pushed it into bankruptcy.

Dish Network said that it expected to pay only $228 million for the company, which has 1,700 stores, after "certain adjustments" on cash and inventory are made.

Once a network of more than 7,200 stores in the United States and 17 other countries, Blockbuster declared bankruptcy on September 23 and went into Chapter 11 reorganization with one billion dollars in debt.

It fell victim to competition from low-priced mail delivery of movies by Netflix, kiosk rental outlets such as Redbox, and online on-demand movie and TV services from Netflix and others, including Dish Network.

Read more: http://news.yahoo.com/s/afp/20110406/ts_alt_afp/usitcompanytakeoverfilminternetblockbusterdish_20110406134416

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Dish Network buys bankrupt Blockbuster for $320 million to bolster online content

(Reuters) - Dish Network Corp won Blockbuster Inc in a bankruptcy auction for about $320 million, boosting the satellite TV provider's online features and marketing reach.

Dish, the second-largest U.S. satellite TV company after DirecTV, trumped at least three other bidders, including activist investor Carl Icahn, for the one-time leader in video rentals.

Dish said the deal, which includes more than 1,700 Blockbuster stores, gives it new ways to market its services. The satellite company could use Blockbuster's online business as a base for delivering movies, analysts said.

http://www.reuters.com/article/2011/04/06/us-blockbuster-dishnetwork-idUSTRE7351VA20110406

There were 10 Blockbusters within five miles of me a few years ago. The last one is liquidating their stock and closing this week.

[Auggie]

1. Brick & mortar software rental locations: interesting short-lived business model

Their dominance lasted maybe 25/30 years? I find it fascinating how things change like this.

[sarcasmo]

2. I saw this and had to ask myself why would one by this dinosaur at that price?

[PatSeg]

3. I was wondering the same thing

What is left of Blockbuster that is worth $320 million?

[sarcasmo]

15. Most of the buildings around here were in strip malls. The name sure isn't worth 320 million.

[NV Whino]

4. I bet they're going into competition with Netflix

Blockbuster tried it other own, but with Dish money, it might work.

[Viva_La_Revolution]

5. Blockbuster has early release rights with the Movie companies

That's part of it I'm sure, but dunno if it's worth $300mil. :shrug:

[onehandle]

6. I added an article to my original post that explains. nt

[PatSeg]

8. I just read the Yahoo article

"Dish said the deal, which includes more than 1,700 Blockbuster stores, gives it new ways to market its services. The satellite company could use Blockbuster's online business as a base for delivering movies, analysts said."

http://news.yahoo.com/s/nm/20110406/bs_nm/us_blockbuster_dishnetwork

I was thinking that maybe access to Blockbuster's customer base was worth a lot of money to a satellite company.

[RaleighNCDUer]

11. Propriatary distribution rights?

They have a huge catalog, and a great many of their titles are displayed as "Blockbuster Exclusive". I suspect that they help fund a lot of projects, in exchange for exclusive video retail rights. Works for them - even some truly awful films that are 'direct to video' will get rented, making up their investment.

[Zephie]

7. That seems like a poor buisiness move

I haven't seen a working Blockbuster in ages. The last one I saw was two years ago and it was liquidating all it's stuff.

[bemildred]

9. I would say they are suckers, except that I would bet the dealmakers made out just fine. nt

[Gidney N Cloyd]

10. I miss my local Blockbuster

Kind of like bookstores, it was fun wandering through the store and stumbling across stuff I hadn't heard of before. And once in a while you'd run into a knowledgeable clerk who had good suggestions, too.

[thelordofhell]

12. Welcome To Machine

When an internet search engine replaces your body in a store and an computer equation replaces a clerk. Who knew I wanted a three-wolf moon t-shirt?

[joeglow3]

13. I miss my locally owned video store

Before Blockbuster drove them out. It was fun going in and seeing the same face for 10 years, knowing them and being able to discuss all the movie choices with them.

[patricia92243]

14. Hope it will lead to many Blockbuster employees getting to keep their jobs. n/t

[RedCloud]

16. Hurrah for Dish. The owner has Free Speech TV!

Charlie also lets us know when Fox tries to price gouge.