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DISH Buys BlockBuster in $320 Million Auction

By - Source: DISH Network | B 27 comments

DISH Network today confirmed that it had purchased struggling video and game rental chain Blockbuster.


It’s been a tough couple of years for Blockbuster and things looked decidedly bad when the company was forced to file for Chapter 11 bankruptcy in September of last year. Today, the company’s assets were purchased by DISH Network in a $320 million bankruptcy court auction. After adjustments for available cash and inventory, DISH expects to pay around $228 million for Blockbuster.

"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," said Tom Cullen, executive vice president of Sales, Marketing and Programming for DISH Network.

"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’s September 2010 filing for Chapter 11 followed a series of closures that saw the chain shutter more than 750 stores in 2010 alone. In 2009, the company closed 374 shops.

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  • 4 Hide
    nforce4max , April 7, 2011 12:18 AM
    What a waste of money, BlockBuster isn't even worth the late fees let alone $320 million.
  • 0 Hide
    gto127 , April 7, 2011 1:18 AM
    What a change in the last 10 years. I can remember when Blockbuster was by far the number one video outlet.
  • 0 Hide
    stm1185 , April 7, 2011 1:37 AM
    I hope this means as a Dish customer they will hook me up with free dvds by mail.
  • Display all 27 comments.
  • 0 Hide
    dkant1n , April 7, 2011 3:44 AM
    I would never pay that money for Blockbuster. I hope they know what they are doing
  • 0 Hide
    fstrthnu , April 7, 2011 4:30 AM
    Hmm, still trying to decide whether to keep my Dish Stocks on my stock simulator or if this is the killing blow and I should just jump off right now. Blockbuster is still handy in areas with sh*t internet, so Dish might be focusing on those areas
  • -6 Hide
    Anonymous , April 7, 2011 6:20 AM
    someone has to say the truth, so here it is: blockbuster is in bankrupt thanks to none other than YOU, searching internet every day looking for low-quality, free pirated movies. look yourselves at a mirror first, then post your comment.
  • 0 Hide
    traviskane , April 7, 2011 7:19 AM
    Quote:
    someone has to say the truth, so here it is: blockbuster is in bankrupt thanks to none other than YOU, searching internet every day looking for low-quality, free pirated movies. look yourselves at a mirror first, then post your comment.
    ..


    Blockbuster is bankrupt because it's failing to compete with "netflix" and "redbox". Yes, now they're finally in the game, but it seems like they've caught on a little late. Also, I wonder if all the lingering retail outlets they've got could be holding them back?

    Of course, Redbox too... how much longer are we really going to rely upon physical media for watching movies?
  • 0 Hide
    nitrium , April 7, 2011 7:26 AM
    What's up with these horrible commercial spammers? Three in one thread!
  • 0 Hide
    jsc , April 7, 2011 8:36 AM
    I suggest that the spammer accounts be permanently deactivated.
  • 1 Hide
    Anonymous , April 7, 2011 10:23 AM
    Blockbuster was beaten by a business model people like more. Good for us, bad for them.

    As far as DISH is concerned, I'm curious how Blockbuster's deals with the studios are set up. ie. Could DISH now offer VOD or New Releases from the studios that are available the same day the DVDs are released? Not even as PPV, but maybe a separate premium DISH movie channel (similar to original HBO) Whereas in some cases Netflix has to wait 90 days...Movie rights could be worth $300 million depending on what kinds of rights DISH has acquired...
  • 2 Hide
    ltgrunt , April 7, 2011 12:55 PM
    pa-am1478someone has to say the truth, so here it is: blockbuster is in bankrupt thanks to none other than YOU, searching internet every day looking for low-quality, free pirated movies. look yourselves at a mirror first, then post your comment.


    Piracy trends have been going down for the past decade, especially as legitimate digital distribution channels have been gaining more traction. Blockbuster isn't failing because an small (and getting smaller) number of people steal movies; Blockbuster is failing because they took forever to catch up to modern technology and business models.

    Taking the time to drive to a brick-and-mortar movie rental store is a hassle. It's so much easier to go online to sites like Netflix where you can sign up for a small, flat monthly fee to either have someone mail you the DVDs or just stream them to any of several devices in your home over the Internet. And at this point, it's so much easier to do that legitimately using companies like Netflix, Amazon, Apple, Microsoft and others and pirating is such a hassle that the legitimate business model is more appealing and is guaranteed longevity.

    Sure, there will probably always be pirates, but these are the same people who shoplift from physical stores. They would never be paying customers, and they have never done so much damage that they made an entire corporate chain go under.
  • 0 Hide
    ChromeTusk , April 7, 2011 4:00 PM
    When Blockbuster finally offered DVD rentals by mail, I was happy to join. One great feature they offered was the ability to return the online video to a store and pick up another rental right away (limited by plan).
    However, I soon hated how they decided to send customers the videos listed in the queue. Blockbuster customer service told me they focused on shipping "available" titles first which caused other titles to not ship. Even if the title/video was at the top position for MONTHS, it would not receive any priority over another "available" title further down the list.
  • 0 Hide
    wiyosaya , April 7, 2011 4:09 PM
    pa-am1478someone has to say the truth, so here it is: blockbuster is in bankrupt thanks to none other than YOU, searching internet every day looking for low-quality, free pirated movies. look yourselves at a mirror first, then post your comment.

    Despite what you might believe, piracy has been credited with increasing sales because conscientious people will by stuff they like after having been given the chance to "preview" it. Locking things down tends to deter sales because people are not willing to take the chance that what they are buying is crap.
  • 0 Hide
    frish , April 7, 2011 5:41 PM
    wiyosayaDespite what you might believe, piracy has been credited with increasing sales because conscientious people will by stuff they like after having been given the chance to "preview" it. Locking things down tends to deter sales because people are not willing to take the chance that what they are buying is crap.


    Except that it probably affected rentals (along with legit online rentals ofc) which may have hurt blockbuster (the main part of them) and maybe increasing buying films elsewhere.
  • 0 Hide
    zkevwlu , April 7, 2011 5:57 PM
    nforce4maxWhat a waste of money, BlockBuster isn't even worth the late fees let alone $320 million.


    That's a bit short sighted. BlockBuster itself as a business model may not be worth much these days but the physical assets they possess still justify the 320 million dollar investment. You can't say no to 1700 stores and a well established distribution channel. If DISH can make it work then it's well worth the money.
  • 0 Hide
    wiyosaya , April 7, 2011 5:59 PM
    frishExcept that it probably affected rentals (along with legit online rentals ofc) which may have hurt blockbuster (the main part of them) and maybe increasing buying films elsewhere.

    But, Blockbuster also sells hard copy. So, the net effect may be a wash for BB.
  • 0 Hide
    Anonymous , April 7, 2011 8:18 PM
    The BB rental machines are awful. The sleeve the DVD goes in destroys the DVD.
  • 0 Hide
    bhaberle , April 7, 2011 8:57 PM
    pa-am1478someone has to say the truth, so here it is: blockbuster is in bankrupt thanks to none other than YOU, searching internet every day looking for low-quality, free pirated movies. look yourselves at a mirror first, then post your comment.


    DVRs, easier pay-per-view options, netflix, redbox, youtube, etc. all were huge factors. So I would disagree with you. Especially when some reports say that piracy has been shrinking and revenues have been growing in their respective industries. This is a simple matter of a company that failed to change with the times. highspeed internet and faster delivery options, and better pricing all contributed to this.
  • 0 Hide
    belardo , April 7, 2011 9:04 PM
    How have the mighty fallen.

    Not sure if this is really a good deal for DISH... other than somehow expanding the BB business model with more products - since they do have many physical stores.
  • 0 Hide
    Anonymous , April 8, 2011 12:33 AM
    F@#% them remember what they did to the mom and pops dvd stores?
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