Blockbuster survives thanks to $320 million offer from Dish Network
Apr 06, 2011 (The Dallas Morning News - McClatchy-Tribune Information Services via COMTEX) -- Dish Network won Blockbuster Inc. in a bankruptcy auction overnight with a $320 million bid, saving the company from liquidation and preserving jobs.
The second-largest U.S. satellite television company indicated Wednesday that it's interested in Blockbuster's remaining stores. The Dallas-based video rental chain entered bankruptcy last September with about 3,200 stores and has closed almost half of those locations.
"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 Dish Network's executive vice president Tom Cullen.
"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," Cullen said in a prepared statement.
The transaction still must be approved by the U.S. Bankruptcy Court at a hearing that is scheduled for Thursday.
Dish led the bidding that started Tuesday morning.
After South Korea's SK Telecom dropped out of the auction, the three remaining bidders were Dish, billionaire investor Carl Icahn, and a group of Blockbuster's debtholders.
An expected joint bid by two liquidation firms, Gordon Brothers Group and Hilco Merchant Resources, didn't materialize.
Blockbuster won't be Dish Network's first acquisition this year. In February it agreed to pay more than $1 billion for hybrid-satellite communications company DBSD North America Inc., which was also operating in bankruptcy.
Dish Network's CEO, Charles Ergen, is also chairman of EchoStar Corp. which acquired broadband satellite service provider Hughes Communications for $1.33 billion in February.
Dish Network at a glance Headquarters: Englewood, Colo.
Founded in 1980 CEO and co-founder Charles W. Ergen 2010 Revenue: $12.64 billion 2010 Profit: $984.7 million Operations: No. 2 U.S. satellite TV provider with 14.2 million customers.
Stock symbol: DISH 52-week range: $17.33 -- $24.76 SOURCE: Dallas Morning News research To see more of The Dallas Morning News, or to subscribe to the newspaper, go to http://www.dallasnews.com. Copyright (c) 2011, The Dallas Morning News Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com.
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