A Blockbuster Deal For Dish Network
The battle to takeover the remains of the Blockbuster company has been won by Dish network in a deal worth $228 million. The deal puts the satellite TV company in a position to compete with online rivals such as Netflix.
New owners of Blockbuster
The Dish Network who are the second to DirecTV as the biggest satellite TV company in the US, were competing against two other companies for the liquidated former video rental giant who filed for bankruptcy protection last September.
As part of the deal, dish get over 1700 of Blockbuster ‘s stores, the name and more importantly, gives them the Blockbuster movie streaming arm. Dish say that the deal will be completed in Q2, with the cash paying off Blockbuster’s creditors who are owed over $1 billion and include rival bidder Carl Icahn.
When Blockbuster filed for bankruptcy in September it said it had about 1.3 million subscribers for its monthly or annual rental services. Netflix has more than 20 million for its mail-order delivery of movies.
Back in 2002 Blockbuster was the king of rental chains valued at $5 billion, before competition from Netflix DVD rental and digital services finished it off. Pundits believe that Dish will close more Blockbuster stores but concentrate on the streaming side of the business to work hand in hand with it’s own satellite service.
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If you think Blockbuster and/or Dish Network have a chance at competing with Netflix, you’re in over your head. Netflix has the upper hand and then some with its subscribers outnumbering Blockbuster Online by more than tenfold. Delusional Dish claims it wants to keep the Blockbuster stores open; however, it is the stores that weighed Blockbuster down in the first place. Blockbuster better clear out its movies and games and make way for satellites, digital video recorders and other Dish items if Dish wants to make any return on its investment.
I guess the Blockbuster brand is still appealing. It will be a tough battle to stay in the competition.
Caro
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