DISH Buys BlockBuster in $320 Million Auction
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.