Blockbuster Sold For $320 Million
Dish Network Corp (DISH) placed the winning bid to purchase the former video rental giant, Blockbuster Inc. (BLOAQ.PK). They agreed to cough up $320 million, outbidding billionaire Carl Icahn and Monarch Alternative Capital of New York.
This is not the final nail in the coffin for Blockbuster. Dish Network plans to re-establish the Blockbuster brand as an extension of it’s own service. Dish Network issued the following statement:
“With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for Dish Network,” said Tom Cullen, executive vice president of sales, marketing and programming for Dish Network. “While Blockbuster’s business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster’s brand as a leader in video entertainment.”
The acquisition will go before by a bankruptcy judge on Thursday. The deal will likely close during the second Quarter.