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Satellite billionaire Charlie Ergen, who owns Dish Network, outbid at least three other suitors in pursuit of Blockbuster in a bankruptcy auction, Reuters reports. That means Dish Network, the second largest U.S. satellite TV provider in the U.S. (behind DirecTV), now owns Blockbuster, for which it will pay around $320 million. What will this mean for Dish Network?
"Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for Dish Network," said Tom Cullen, executive vice president of sales, marketing and programming for Dish Network.
This is the second time in two months that Dish Network has purchased a bankrupt company, the other being a hybrid satellite and land-based communications company called DBSD North America that was acquired for $1.4 billion.
Depending on how Dish Network implements its Blockbuster acquisition, this could end up be being a steal for the satellite company. At its peak in 2002, Blockbuster was worth more than $5 billion, but struggled to compete against the digital video revolution led in part by Netflix.
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RUSENSITIVESWEETNESS
April 06, 2011 at 3:02pm
So what do they get out it, other than warehouses full of old DVDs?
OliverSudden
April 06, 2011 at 12:03pm
As a former employee of Blockbuster Video (Passaic, NJ 1993), I can say that bankruptcy is a lovely piece of poetic justice. Enjoy.
ShyLinuxGuy
April 06, 2011 at 8:14am
$320M is nothing...I guess going bankrupt, they're not worth much.
D00dlavy
April 06, 2011 at 8:44am
Totally. Some people shit that much money in corn.
It's sad, though, since so many stores are closing in my area. Fresno, CA. used to be the hub of movie rentals in the world, but sadly, we've lost that title and now must settle on being the city with the most carjackings in the world.
