Dish Network's $320 Million Bid Wins Blockbuster in Bankruptcy Auction

Posted 04/06/2011 at 7:51am | by Paul Lilly

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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.