Dish scoops up Blockbuster for $228 million
In a strange bit of video entertainment convergence, Dish Network (Nasdaq: DISH) has purchased "substantially all of the assets" of bankrupt Blockbuster for $228 million in a bankruptcy court auction. Dish had bid $320 million but the cost was reduced to account for cash and inventory.
Tom Cullen, executive vice president of sales, marketing and programming said in a Dish news release that the satellite provider is going to try to make Blockbuster's flagging video rental model work.
"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," Cullen said, while conceding that Blockbuster does face "significant challenges."
An immediate challenge for Dish might be Blockbuster's tenuous, but still there, ties with Comcast and a program called DVDByMail that opens up 100,000 discounted Blockbuster titles for Comcast (Nasdaq: CMCSA) customers to order via the USPS. The deal, announced last year, also lets Comcast subs return the DVDs to Blockbuster stores where, no doubt, they will soon be offered the opportunity to subscribe to Dish Network.
- see this news release
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