Englewood, Colo. – Satellite TV provider DISH Network (NASD: DISH)
announced on Wednesday that it has emerged as the winning bidder for the assets
of bankrupt video store rental chain Blockbuster, with a bid valued at $320
million. The transaction is expected to close in the second quarter of 2011. "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, executive vice president of sales, marketing
and programming for DISH Network.
"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."
Other prospective suitors for Blockbuster reportedly included billionaire
investor Carl Icahn, South Korea’s SK Telecom, and Cobalt Video Holdco, a group
that included funds managed by Monarch Alternative Capital, Owl Creek Asset
Management, Stonehill Capital Management and Värde Partners.