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Wednesday
Apr062011

DISH Network Wins Bid for Blockbuster at Bankruptcy Auction

PRNewsFoto/DISH Network L.L.C.(ENGLEWOOD, Colo.) -- DISH Network Corporation announced Wednesday it won a bankruptcy court auction for Blockbuster, Inc., the large video rental company that filed for Chapter 11 bankruptcy last year.

After battling it out with other prospective buyers, DISH Network's winning bid came in at approximately $320 million.  The satellite service provider expects to pay a total of about $228 million to acquire Blockbuster after some adjustments are made at the closing, which is planned for the second quarter of 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."

Blockbuster decided to sell the company back in February of this year when creditors could not come to an agreement about a recapitalization plan for the company.

Copyright 2011 ABC News Radio

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