With a bid of $320 million, Dish Network has won an auction for Blockbuster Inc. which filed for Chapter 11 bankruptcy protection in September and Dish bid beat out billionaire Carl Icahn and other investors.The deal still requires approval from a U.S. bankruptcy judge and allows the former movie-rental giant to reorganize instead of having its assets sold off by liquidators…………
DISH Network Corporation announced that it was selected as 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.”Completion of the transaction is contingent upon satisfaction of certain conditions, including bankruptcy court approval.Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in DISH Network Corporation‘s Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K. The forward-looking statements speak only as of the date made, and DISH Network Corporation expressly disclaims any obligation to update these forward-looking statements.
[ttjad keyword=”general”]
