Dish Network acquires Blockbuster for $320 million

“Dish Network Corp won Blockbuster Inc in a bankruptcy auction for about $320 million, a move that could see the second-largest U.S. satellite TV provider tapping the movie rental chain’s online content to strengthen its offerings,” Sakthi Prasad and Supantha Mukherjee report for Reuters.

“Dish, led by satellite billionaire Charlie Ergen, trumped at least three other bidders, including activist investor Carl Icahn, for the one-time leader in video rentals,” Prasad and Mukherjee report. “Dish might find Blockbuster’s online content appealing as the company could use it as a base for an online product to deliver movies.”

“Blockbuster had a market cap of more than $5 billion at its peak in 2002, but came under pressure from mail-order and digital competitors such as Netflix Inc. The company filed for bankruptcy in September and put itself up for sale in February after a reorganization plan fell apart,” Prasad and Mukherjee report. “The winning bid must still be approved at a hearing in federal bankruptcy court on Thursday.”

Read more in the full article here.

MacDailyNews Take: Blockbuster bid.

[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]


    1. …because this could mean competition from Dish for online movie rentals? Because they’ll most likely be looking to compete against the Netflix/Apple TV combo?

      Just because Apple isn’t mentioned, doesn’t mean the story has nothing to do with them.

    1. $320 million is a bargain if you need to set up a retail network like Blockbuster has. Only problem — what do you use it for?

      If Google was smart, and wants to keep playing the “copy Apple” game, they should have bought it for a series of Google stores to own the distribution channel for forthcoming tablets, TVs, Android phones, etc.

    2. Yes, why indeed. Netflix and Redbox and iTunes have proven that a brick and mortar retail network is a huge liability. They cost lots of money and customers would rather not make an extra trip to yet another store when they can order the movie online (for less) or pick it up on the way out of Walmart, or have the the DVDs automatically delivered to their mailboxes.

      1. At least by me, most of the Blockbuster stores are closing and liquidating their inventory. They’re getting out of retail and moving to online and kiosk models, bu Dish just got a huge brand name and all the licenses and online distribution agreements Blockbuster has.

    1. All the ones here are closed. I’ve wondered if these were mostly leases or if the company’s assets includes a vast and vacant retail real estate portfolio. I doubt there is one which would qualify for an Apple Store, but Ballmer might be interested in some.

    2. BB has closed and is still in the process of closing a number of stores. Not sure how many they were planning to close, but I don’t think intended to close all of them.

      If this deal goes through, then it wouldn’t surprise me if Dish does close up all the rest.

  1. I love the Dish. I even canceled $10 netflix and added the dish platinum, which gives me 22 HD movie channels. I decided to make use of the dvr and record the films to watch. Now if only I can get them to get MSG & YES networks

  2. I think you have a typo….. or Reuters, or Engadget.

    Engadget says $230 million. Still stupid purchase, but 1/3 less stupid. I’m a huge Dish customer. So huge in face, that when I call Dish for anything, I automatically get a human answering the phone. However, I’m wondering who’s driving this company if they’re going to flush cash like that….

  3. Never liked Blockbuster. Never liked their selection (remember how hard it was to find DVD’s long after they started to be popular, still stocking mostly crappy VHS?), prices, policies, limited number of popular titles, etc. and now they are effectively gone which gives me a very cruel chuckle indeed. Not a forward thinking company in any regard and that was their folly. So long and good riddance!

  4. I haven’t rented a physical disk in so long. And I never will again, if I can help it. If I want to rent a movie, I use the cable box or iTunes. Why on Earth would I ever want to deal with return trips, or cleaning off grimy finger-stained DVDs?


  5. Wow. Just got a Blockbuster membership last Thursday in Canada. Good timing on my part, although it is a separate entity.
    $10 for 1 month for unlimited non-new release rentals so long as it’s one at a time. I think I’ve rented about 10 so far so that makes it a buck a pop and LG has ensured that the discs make their way into iTunes, and I have seen at least 30 more I would rent. I have Netflix and the selection is dramatically worse unless you want ancient TV shows for the same $10, plus the fact that my son watched Netflix for a week at Christmas and went 20 gig over my Rogers internet cap to the tune of $45. With Blockbuster 5 minutes from my house on the way to and from work it seems like a great deal.
    “With glowing hearts…”

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