Digital News Report – DISH Network announced today that they were selected as the winning bid for the Blockbuster Inc. bankruptcy court auction of many of their assets. The winning bid was valued around $320 million but with adjustments, DISH Network believes they will pay round $228 million in cash.
The transaction has to meet certain conditions which also involves the approval of the bankruptcy court. DISH said that they expect the transaction to complete sometime during the second quarter of 2011.
Blockbuster has over 1,700 retail store locations for renting movies. The rapid changing technology and the way people rent movies have changed so much that traditional retail stores for renting movies were hit hard. Major competitor, Hollywood Video, had went bankrupt and all stores were closed. Blockbuster has been trying to avoid losing their business.
Blockbuster does online movie rentals, by mail rentals, and also have self-serve kiosks to rent movies. They also still have stores that rents movies.
By Victoria Brown