Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Dish Network buys Blockbuster for $320mn

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
onehandle Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:39 AM
Original message
Dish Network buys Blockbuster for $320mn
Edited on Wed Apr-06-11 10:57 AM by 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/usitcom...



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-blockbuste...

There were 10 Blockbusters within five miles of me a few years ago. The last one is liquidating their stock and closing this week.
Printer Friendly | Permalink |  | Top
Auggie Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:46 AM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:49 AM
Response to Original message
2. I saw this and had to ask myself why would one by this dinosaur at that price?
Printer Friendly | Permalink |  | Top
 
PatSeg Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:55 AM
Response to Reply #2
3. I was wondering the same thing
What is left of Blockbuster that is worth $320 million?
Printer Friendly | Permalink |  | Top
 
sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 01:28 PM
Response to Reply #3
15. Most of the buildings around here were in strip malls. The name sure isn't worth 320 million.
Printer Friendly | Permalink |  | Top
 
NV Whino Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:57 AM
Response to Reply #2
4. I bet they're going into competition with Netflix
Blockbuster tried it other own, but with Dish money, it might work.
Printer Friendly | Permalink |  | Top
 
Viva_La_Revolution Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:58 AM
Response to Reply #2
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:
Printer Friendly | Permalink |  | Top
 
onehandle Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:58 AM
Response to Reply #2
6. I added an article to my original post that explains. nt
Printer Friendly | Permalink |  | Top
 
PatSeg Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:04 AM
Response to Reply #6
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_blockbuste...

I was thinking that maybe access to Blockbuster's customer base was worth a lot of money to a satellite company.
Printer Friendly | Permalink |  | Top
 
RaleighNCDUer Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:51 AM
Response to Reply #2
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.
Printer Friendly | Permalink |  | Top
 
Zephie Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 10:59 AM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:07 AM
Response to Original message
9. I would say they are suckers, except that I would bet the dealmakers made out just fine. nt
Printer Friendly | Permalink |  | Top
 
Gidney N Cloyd Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 11:10 AM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
thelordofhell Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 12:27 PM
Response to Reply #10
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?
Printer Friendly | Permalink |  | Top
 
joeglow3 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 12:34 PM
Response to Reply #10
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.
Printer Friendly | Permalink |  | Top
 
patricia92243 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 12:53 PM
Response to Original message
14. Hope it will lead to many Blockbuster employees getting to keep their jobs. n/t
Printer Friendly | Permalink |  | Top
 
RedCloud Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-06-11 01:39 PM
Response to Original message
16. Hurrah for Dish. The owner has Free Speech TV!
Charlie also lets us know when Fox tries to price gouge.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sat Aug 23rd 2014, 04:39 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC