Colorado-Based DISH Network Agrees to Acquire Blockbuster Assets for $320M
Press release from the issuing company
Wednesday, April 6th, 2011
DISH Network Corporation announced that it was selected as the winning bidder in the bankruptcycourt auction for substantially all of the assets ofBlockbuster, Inc.DISH Network's winning bid was valued at approximately$320 million. After certain adjustments are made at closing of the transaction, includingadjustments foravailable cash and inventory,DISH Networkexpects to pay approximately$228 millionin cash to acquireBlockbusterat 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,Blockbusterwill complement our existing video offerings while presenting cross-marketing and service extension opportunitiesforDISH Network," saidTom Cullen, executive vice president of Sales, Marketing and Programming forDISH Network. "WhileBlockbuster'sbusiness faces significant challenges, we look forward to working with its employees to re-establishBlockbuster'sbrand as a leader in video entertainment."
Completion of the transaction iscontingent uponsatisfaction of certain conditions, includingbankruptcy court approval.