This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dish Wins Auction for Blockbuster

Updated from 4:14 a.m. EDT

NEW YORK ( TheStreet) -- Dish Network (DISH - Get Report) won a bankruptcy auction for Blockbuster (BLOAQ.PK) with a winning bid valued at about $320 million.

After certain adjustments are made, Dish said Wednesday it expects to pay about $228 million in cash to acquire Blockbuster.

Closing of the deal is expected in the second quarter.

"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, Dish's executive vice president of sales, marketing and programming. " 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."

Dish won the auction for the movie-rental chain early Wednesday morning.

The Wall Street Journal, citing people familiar with the matter, reported Blockbuster's creditors will receive about $178.8 million of Dish's bid, with the balance of the money going to expenses associated with the auction and Blockbuster's bankruptcy proceedings.

Dish has expressed interest in using some Blockbuster stores to sell subscriptions to its service, one of the people said, the newspaper reported. Dish also is interested in possible synergies from Blockbuster's on-demand business.

The bid from Dish, a satellite-TV provider, beat out offers from a group lthat included Carl Icahn, and a group of hedge funds led by Monarch Alternative Capital, the Journal reported.

Blockbuster filed for Chapter 11 in September.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DISH $45.79 -0.54%
AAPL $92.94 -0.73%
FB $117.86 -0.17%
GOOG $697.32 0.23%
TSLA $214.96 -3.40%


Chart of I:DJI
DOW 17,721.53 +70.27 0.40%
S&P 500 2,058.63 +7.51 0.37%
NASDAQ 4,738.0360 +12.3970 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs