Tuesday, April 5, 2011

DISH Acquires Blockbuster

DISH Network, which serves 14.1 million satellite TV customers, was the winning bidder in the bankruptcy court auction for substantially all of the assets of Blockbuster, Inc. DISH Network's winning bid was valued at approximately $320 million. After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, DISH Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur 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."

DISH Network lost approximately 156,000 net subscribers during the quarter ended Dec. 31, 2010, giving the company approximately 14.133 million subscribers at year-end. The number of net subscribers gained for the full year ended Dec. 31, 2010, was approximately 33,000.http://www.dish.com