Charlie Ergen’s Dish Network Corp. outbid investor Carl Icahn and at least two others in a bankruptcy auction to purchase Blockbuster Inc. for about $320 million, Reuters reported April 6.
Dish Network, the second-largest U.S. satellite television company after DirecTV, said the Blockbuster acquisition will give it new ways to market its services. Analysts said it could use the one-time video rental giant’s online business as a base for delivering movies.
Dish expects to pay about $228 million in cash to acquire Blockbuster and its more than 1,700 stores. The money will go toward paying off the company’s creditors, including Icahn and movie studios, who are owed more than a combined $1 billion.