Skip to main content

Dish Network wins Blockbuster auction with $320 million bid

blockbuster-dish-network-bid-auctionDish Network has won a bid to buy bankrupt movie rental business Blockbuster. The satellite company’s winning bid for Blockbuster was $320 million, but says it expects to pay close to $228 million cash, after adjustments, once the deal is settled, reports TechCrunch.

“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 VP of sales, marketing and programming in a statement after the auction. “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 beat out a number of other bidders, including billionaire Carl Icahn, who owns a larger percentage of Blockbuster stocks and bonds; a group Blockbuster lenders led by Monarch Alternative Capital and South Korea’s SK Telecom.

Blockbuster put itself up for auction in February after Cobalt Video reportedly offered to buy the business for $290 million. The video rental company used that bid as a “stalking horse” offer, or the minimum amount it would consider for future bids.

The auction follows Blockbuster’s declaration of bankruptcy in September. At that time, Blockbuster had 5,600 stores worldwide, with 3,300 in the US. The company has since been forced to close about 900 stores in the US since filing for Chapter 11, but plans to close another 700 by mid-April, according to a company spokesman.

Blockbuster blames its business failings on competition from mail DVD rental and video streaming service Netfllix. In an attempt to compete, Blockbuster launched its own on-demand movie streaming service in 2009, and shut down nearly 1,000 retail locations. Despite these efforts, however, the company still accrued roughly $900 million in debt, which led to its Chapter 11 filing. According to Blockbuster’s bankruptcy petition, the company has about $1.02 billion in assets and $1.47 billion in debt.

The deal with Dish Network is expected to close in the second quarter, pending approval from US Bankruptcy Judge Burton Lifland.

Editors' Recommendations

Andrew Couts
Former Digital Trends Contributor
Features Editor for Digital Trends, Andrew Couts covers a wide swath of consumer technology topics, with particular focus on…
Best TV deals: LG, Sony, Samsung, TCL, and more
Vizio OLED TV

Among the best TV deals taking place right now you’ll find plenty to choose from, with Sony TV deals, Samsung TV deals, LG TV deals, TCL TV deals, and Vizio TV deals leading the charge. With so many of the best TV brands having discounted TVs right now we thought we could make shopping for a new TV a little easier by rounding up all of the best TV deals out there. Reading onward you’ll find all of the details, which include 4K TVs starting at just $247 and a number of different TV sizes to choose from. If you have a specific space to fill with your new TV, you can also shop for some savings by checking out the current 65-inch TV deals, 70-inch TV deals, 75-inch TV deals, and 85-inch TV deals.
Hisense 50-inch A6 Series 4K Smart TV — $247, was $260

For a large screen TV at a fraction of the expected cost, check out this TV from Hisense. It has everything you need to get the modern TV experience, including a gaming mode, HDR and HDR10, a 4K AI upscaler for older content, and a special sports mode. This sports mode automatically changes the screen's settings to accommodate sports programming without you having to fiddle with each option. Additional bonuses like the included voice remote, DTS Virtual X, and the ability to connect directly to the TV with Bluetooth headphones and speaker make this TV easily go head-to-head and achieve victory over any other TV under $500.

Read more
Best 75-inch TV deals: Get a big screen from $470
LG 75-Inch Class UN6970 Series LED 4K UHD Smart TV

There are a lot of different TV sizes out there, with almost all of them offering up some of the best TV deals to shop. Top TV brand are discounting all sorts of TVs, in fact, with Samsung TV deals, Sony TV deals, LG TV deals, TCL TV deals, and Vizio TV deals all turning out some impressive discounts. If you’re considering a larger screen, we’ve got you covered, as we’ve rounded up all of the best 75-inch TV deals below. Reading onward you’ll find all of the details on how to save on a new 75-inch TV, as well as some information on why each deal may work for you. If you’d like to look at some other TV sizes there are also a lot of 65-inch TV deals, 70-inch TV deals, and even 85-inch TV deals going on right now.
Samsung 75-inch DU7200 4K Tizen TV — $700, was $750

Samsung offers a lot of value with the DU7200. It’s a 4K TV with smart features powered by Tizen, and it has an LED display that provides superior brightness and high color contrast. The Tizen platform allows you to play games, work out with a trainer, and stream your favorite shows with built-in access to top streaming platforms. In addition to a high quality 4K picture, the DU7200 also offers free live TV with only the need for a Wi-Fi connection.

Read more
The 43-inch and 85-inch Samsung The Frame TVs are on sale today
The Samsung 65-inch The Frame QLED TV placed on a wall in an attractive living room.

Samsung has some fantastic discounts on its ever-popular The Frame TV range: The 85-inch model is reduced by $500 to $3,800, and the 43-inch model is reduced by $200 to $800. If you’re looking for great TV deals that garner you a stylish yet practical TV, this is your chance to do so. Keen to learn more? Let’s take a look at what the Samsung The Frame QLED TV has to offer.
Samsung The Frame 43-inch QLED TV -- $800, was $1,000

Samsung The Frame 85-inch QLED TV -- $3,800, was $4,300

Read more