Dish Acquires Blockbuster at Auction for $320 Million
Dish Network’s $320 million offer for the ailing movie rental chain Blockbuster Inc. was approved April 7 by a U.S. bankruptcy court in New York.
The Englewood, Colo.-based satellite television provider announced April 6 that it was the winning bidder for Dallas-based Blockbuster in a bankruptcy court auction. Dish expects to pay $228 million in cash to acquire all of Blockbuster’s assets in a deal the company expects to close by the end of June.
“With its more than 1,700 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,” Tom Cullen, Dish Network’s executive vice president of sales, marketing and programming, said in a statement. “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.”
Blockbuster, whose operations include video stores, DVD vending kiosks, video-by-mail and digital-delivery businesses, filed for Chapter 11 bankruptcy last September.
In February, Dish Network agreed to purchase for $1 billion the struggling satellite-terrestrial wireless broadband provider DBSD North America.