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Blockbuster Auctions Itself Off; Any Takers?

By - Source: Cnet | B 52 comments

After filing for bankruptcy, Blockbuster will now be auctioning its operation off to the highest bidder.

On Monday, Blockbuster announced that it will be auctioning off its operation to the highest bidder, after the management was offered $290 million for its international and U.S. subsidies. Without much hesitation the company has agreed to an arrangement in which the $290 million will be used as the minimum amount the company will accept for its sale.

After many years of successfully providing movies to their loyal customers, Blockbuster has been dying a slow and painful death at the hands of Netflix and similar, cheaper movie renting alternatives. In 2009, Blockbuster closed nearly 1,000 stores due to profit losses which didn't do much for the company's stock value. After the company's stock was taken off of the New York Stock Exchange due to its low value, the company was forced into a corner and filed for bankruptcy.

Now in the middle of Chapter 11 bankruptcy, the company must first obtain authorization from the U.S. Bankruptcy Court in order to hold an auction for its sale. Despite the grim future of Blockbuster, the company's CEO Jim Keyes is confident that the buyer of Blockbuster will have made a great investment.

"The purchaser will be able to take full advantage of Blockbuster's many strengths, which include an internationally recognized brand name, an exceptional library of more than 125,000 titles, millions of loyal customers, and a multi-channel content distribution platform," Keyes explained. "Because of its ability to deliver physical content (through DVDs) and digital content (through streaming), Blockbuster can offer customers the unique ability to access any movie, any time."

Blockbuster is expected to be sold by April 20 at the latest and any binding offers made must be able to close within 30 days of approval by the U.S. Bankruptcy Court. While the auction and sale continues, the company's U.S. and international stores and operations will still be in business.

Does anybody here still use Blockbuster? Let us know in the comments below.

Discuss
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  • 2 Hide
    mdsiu , February 24, 2011 2:31 PM
    No
  • 2 Hide
    gurboura , February 24, 2011 2:32 PM
    I bet you that CEO is still making tons of money.

    Let Blockbuster die. It's lived it's life, they were too stubborn to change with the times, they deserve it.
  • 2 Hide
    officeguy , February 24, 2011 2:40 PM
    I went to rent videos at a mom and pop shop. Then blockbuster took over and then they went out of business. I didn't have a choice but to go to blockbuster at the time. Then came Netflix. I stop going to blockbuster a long time ago. Now in my area it is closing down, because the rent went up on the lease so the owner is not renewing the lease. So, there is no more brick and mortal stores around. Just Red Box and of course movies on-line.
  • 1 Hide
    rhino13 , February 24, 2011 2:44 PM
    Yeah, I buy used movies there from time to time. But honestly I've even turned more toward MovieStop for that.

    I'm not much into streaming movies. I'd rather have the hardware but, I'm a dying breed.
    As far as renting movies... there's no advantage in renting rather than streaming so why rent?
  • 0 Hide
    captaincharisma , February 24, 2011 2:48 PM
    i hope someone buys them blockbuster is the only good video store where i am since movie gallery closed here
  • 0 Hide
    SlickyFats , February 24, 2011 2:49 PM
    Rather than closing stores they should have just lowered their prices. Blockbuster has always been far more expensive than our local Hasting's Entertainment.
  • 0 Hide
    gtvr , February 24, 2011 3:01 PM
    I'll bid a buck. Maybe 2, that's what I have in my wallet now, although I sort of need that for lunch.
  • 0 Hide
    TheWhiteRose000 , February 24, 2011 3:01 PM
    10 DOLLARS!
  • -2 Hide
    erick81 , February 24, 2011 3:03 PM
    Just let it die, my experience with Blockbuster has been nothing short of terrible I was charged late fees on things I never rented a bunch of times had something to do with them issuing me the same account number as someone else it took them three months to figure it out.Just about a week ago I went in to rent my niece a game and they told me I had to reconfirm my credit card on my account so I gave them my debit card the one that I used to open the account and the lady wouldn't take it she said they only take credit cards I chuckled abit and told her I didn't think her company had enough blood in it's vains to be picky about how I pay.I went back to the house an opened a gamefly account probably should have done it sooner.It sucks because on an impulse you could just go and rent whatever but it always comes with a hassle with Netflix and Gamefly I can't get the physical data right away but it's always hassle free.
  • -1 Hide
    hardcore_gamer , February 24, 2011 3:04 PM
    Blockbuster? whats that ?:p 
  • 0 Hide
    masterbinky , February 24, 2011 3:11 PM
    It's where I rented the torture device known as the Nintendo Virtual Boy.
  • 0 Hide
    Wish I Was Wealthy , February 24, 2011 3:20 PM
    Blockbuster closed down well before Video Easy did in my area where I live & Video Easy has been closed down for well over 6 months now...Redroom is the only video hire place now that is still opened...
  • 1 Hide
    g00fysmiley , February 24, 2011 3:21 PM
    17 dollars and the tire pressure reader (ie the contents of my pockets atm) did i win?
  • -6 Hide
    marquis , February 24, 2011 3:22 PM
    piracy claims another victem
  • 0 Hide
    Wish I Was Wealthy , February 24, 2011 3:24 PM
    Also as the years have gone by,I have noticed that in many of the nearby suburbs that Blockbuster once was sited,they have usually closed first out of all the major & the minor Video Hire outlets...
  • -1 Hide
    Anonymous , February 24, 2011 3:24 PM
    The free market and consumers have spoken. Blockbuster failed to keep pace with trends and technology and has suffered the consequences. And, to think it once was approached by Netflix, with the latter company offering itself for sale for a song ($50 million or so).

    Maybe Obama and the Democrats will deem Blockbuster to be "too big to fail" and too valuable in terms of unionized employee votes, and arrange for a taxpayer bailout, or government acquisition, as with GM and Chrysler. Stranger things have happened.
  • 4 Hide
    sunflier , February 24, 2011 3:30 PM
    If Blockbuster is late for Bankruptcy court I hope they are slapped with a HUGE late fee!!!
  • -1 Hide
    Wish I Was Wealthy , February 24, 2011 3:31 PM
    Or maybe the black power group can buy it out real dirt cheap,but they'll have a real upwards battle to keep it afloat though...
  • 0 Hide
    killbits , February 24, 2011 3:49 PM
    I use Blockbuster Online for the sole reason that I signed up six years ago when it was relatively new, and it offered more services than NetFlix. Well, they aren't allowed to raise my monthly fee, so I still pay 20 bucks per month for their unlimited plan, which now goes for $40/month or something outrageous.

    I like the fact that I can take my return envelope into the Blockbuster store 5 minutes from my house and get a free movie. Instant gratification. I tend to get 6-10 movies per week which is like twice what I could ever watch, so my dvd ripper and hard drives see a lot of use :) 

    Now, things would be different if NetFlix offered every movie for streaming. But since their streaming library is (so far) pretty small, and Blockbuster still gets a lot of new releases a month before NetFlix, I'm sticking with Blockbuster for now.

    Hopefully my "grandfather" price plan will stay in effect after Blockbuster is sold...
  • 0 Hide
    javi_ucsd , February 24, 2011 3:56 PM
    I will be sad to see Blockbuster disappear. It has so many advantages over Netflix. I guess they just got their game together too late and they burned people in the past who never came back??? =(

    I'll admit the rental of movies (.50-$5 per movie, depends on how old) at a store is not an economical choice for watching movies but the DVD/Blurays through the mail works awesome (Blockbuster Online, starts at $9) and the Kiosks (Blockbuster Express, $1) is dirt cheap for a rental.

    I don't understand it! =(
    I clearly get movies faster (in-store exchange), and sooner (28 days earlier), and better quality (by not using streaming), save money (no extra charge for Blu-rays) by using Blockbuster Online rather than Netflix. And BTW, they don't sensor movies anymore like they use to.

    For a couple bucks more, you get the in-store exchange which really increases your throughput of movies (if you are close to a store). I am not a fan (yet) of the streaming. The streaming selection is very limited and the quality is not even close to actually having the disc. When that does happen, I will totally be in favor of streaming. Blockbuster customer service is awesome (at least for the last 2 years). A few of times, I was sent the wrong disc, so I just let them know via email. I got a free rental coupon I can take to a local store or I just take the disc to a local store and explain it to them. They give me a free rental on the spot. That's a lot faster than waiting for the next disc in the mail.

    Although, Blockbuster Online does have streaming, and they have the latest movies (unlike Netflix), it is a pay-per-view model (kind of expensive). It would be more affordable if they could do an inclusive streaming package per month (so many pay-per-view movies per month or something like that).
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