Satellite television provider Dish Network was selected as the winner of a bankruptcy court auction for the assets of Blockbuster late Tuesday with a bid valued at $320 million, the company announced late that day. The actual cash price Dish will pay is closer to $228 million after adjustments are made for cash and inventory. The deal is expected to close during the second quarter, according to Dish Network.
“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, the company’s EVP sales, marketing and programming.
“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.”
The New York Times reported that Dish Network has been an active acquirer, as its founder, Charles Ergen, looks to expand his digital business. In March, the company agreed to buy the satellite operator DBSD North America for about $1.4 billion once it emerged from bankruptcy. Ergen, through another venture, EchoStar, has been buying up debt in the satellite company TerreStar Networks. In February, EchoStar announced plans to buy Hughes Communications, the satellite Internet company, for $1.3 billion. With Blockbuster, The Times suggests that Dish Network gains a large retail presence through which it can potentially sell services.