Englewood, Colo.-based Dish Network Corp. has made an offer to acquire the assets of Blockbuster Inc. (Dallas). The movie-rental company filed for bankruptcy protection in September 2010, citing price pressures from fast-growing rivals such as Netflix Inc. and Coinstar Inc.
Dish Network says its winning bid is valued at $320 million, but after certain adjustments are made at closing it expects to pay about $228 million in cash to acquire Blockbuster.
“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,” says Tom Cullen, executive vp, sales, marketing and programming, reports Memphis Business Journal. “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.”
The retailer has been closing underperforming stores over the past few months.