Dish Network Buying Blockbuster For $320 Million In Bankruptcy Auction
DISH Network Corp. (NASDAQ:DISH) has acquired Blockbuster Inc. in a $320 million bankruptcy auction. Dish Network outbid at least 3 other bidders including billionaire investors Carl Icahn. The deal includes over 1,700 Blockbuster stores and the rights to stream BLockbuster’s movies over the Internet.
This is Dish is expecting to pay $228 million in cash, $100 million of receivables and cash, and a rental library estimated to be worth around $175 million. Blockbuster will use the money to pay creditors, which includes Carl Icahn and other bondholders.
Around the time that Blockbuster filed for bankruptcy in September, they had about 1.3 million subscribers for its monthly or annual services. Netflix has about 20 million subscribers for their mail-order delivery. Dish is expecting to continually close Blockbuster’s stores.
[Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry