In a move that has perplexed analysts, DISH Network announced this week that it will buy retail movie rental chain Blockbuster Inc. The satellite company submitted the winning bid in a bankruptcy court auction and upon approval will take over the insolvent chain. According to company executives, the deal is valued at $320 million, though DISH will pay roughly $228 million in cash to complete the acquisition. Analysts have mostly vacillated between disbelief and confusion over the deal as Blockbuster is currently in bankruptcy and its brand value has dwindled over the past decade as Netflix came to prominence.
DISH network's vice president of sales, marketing and programming, Tom Cullen, said the deal would boost the network's movie offering service. "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," Cullen affirmed. "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."
According to Consumer Reports, DISH would keep Blockbuster stores open and could use them to sell its TV services. Some analysts have also speculated that DISH could use Blockbuster's On Demand video service to supplement its pay-per-view and video-on-demand services.
I was actually really excited to hear that my employer/TV provider DISH Network took over Blockbuster during their rough times. I've been a huge fan of Blockbuster from way back when and definitely feel they have the right to stay in business. New customers to DISH will even benefit from this since DISH has an offer going on right now giving new customers 3 months free of Blockbuster for their first 3 months as new customers. It's pretty cool and I recommend everybody check it out. Just go to DISH Network's website here http://goo.gl/wuMrN. :)
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