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DISH Network Agrees to Acquire Blockbuster Assets

Discussion in 'General DISH™ Discussion' started by klang, Apr 2, 2011.

  1. Apr 2, 2011 #1 of 82
    klang

    klang Hall Of Fame

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    Article in today's Wall Street Journal says Dish has put in a bid for Blockbuster. Doesn't seem like a good fit to me unless they are just after the name.
     
  2. Apr 2, 2011 #2 of 82
    Nick

    Nick Retired, part-time PITA DBSTalk Club

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    Charlie wants to pick off BB's nascent streaming service. IPTV is a fast-growing segment of entertainment delivery for all major content providers.
     
  3. Apr 2, 2011 #3 of 82
    Paul Secic

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    I don't see how it fits into Dish's agenda either, time will tell I guess.
     
  4. Apr 2, 2011 #4 of 82
    Nick

    Nick Retired, part-time PITA DBSTalk Club

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    Paul, re-read the WSJ article and post #2.
     
  5. Apr 2, 2011 #5 of 82
    klang

    klang Hall Of Fame

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    The story doesn't say who 'this person' is. No way to know if they actually know what Dish is up to.

    I think being stuck with about 3000 actual brick and mortar stores doesn't really fit.
     
  6. Apr 2, 2011 #6 of 82
    Nick

    Nick Retired, part-time PITA DBSTalk Club

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    Charlie is not interested in the B&Ms, but every BB I've seen I would consider to be prime commercial real estate with a considerable aggregate market value. I'm betting on Mr. Ergen coming out on top if he is, in fact, the successful bidder.
     
  7. Apr 4, 2011 #7 of 82
    inkahauts

    inkahauts Well-Known Member

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    Assuming he can sub lease the sites for a hi value. I would think it'd be very hard to sub lease things at a profit when many where probably locked in at higher rates than todays real estate values.. But who knows...
     
  8. Apr 4, 2011 #8 of 82
    Nick

    Nick Retired, part-time PITA DBSTalk Club

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    Again, this is all about BBs streaming service to augment the sat biz, not so interested in the BB locations.
     
  9. Apr 4, 2011 #9 of 82
    RasputinAXP

    RasputinAXP Kwisatz Haderach of Cordcuttery

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    most of the BB locations are rented and most of those are already liquidating.
     
  10. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    According to Businessweek this morning:
    Regarding Charlie's interest, another WSJ article headlined Blockbuster Bankruptcy: Why Does DISH Want In? offers two "analysts'" explanations:
    I don't know how good the inventory is. Even the article notes:"Why, for example, are there 96 copies of No Strings Attached and zero copies of Black Swan?" But Blockbuster must have contractual arrangements with studios for streaming rights, arrangements that might be difficult for Charlie to negotiate from scratch today.
     
  11. Stuart Sweet

    Stuart Sweet The Shadow Knows!

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    Maybe there is intellectual property that Dish wants. It certainly can't be the stores.
     
  12. klang

    klang Hall Of Fame

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    No idea how this stuff works, Can they bid on just pieces of Blockbuster? Can't imagine why anyone would want the 3000 stores in this market. Some predict the Commercial Real Estate market is the next bubble to burst.
     
  13. HobbyTalk

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    I would think that BB owns but a handful of properties. Most of their stores are located in malls and shopping centers that is leased property. The bankruptcy will wipe out most of the debt and would most likely break any leases.

    One example I look at is Eddie Lampert buying Kmart when it was in bankruptcy and when it came out he used the excess cash Kmart had to leverage a buyout of Sears.
     
  14. trdrjeff

    trdrjeff Icon

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    (Story Developing)
     
  15. Hoosier205

    Hoosier205 Active Member

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    Good lord...Charlie sure does like to spend the money.
     
  16. scooper

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    Charlie will spend money when he deems it desirable to.

    I believe that Dish has more satellites than Direct (both active and inactive).
     
  17. Hoosier205

    Hoosier205 Active Member

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    One failing company purchasing another. A wise investment.
     
  18. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Failing? DISH remains profitable.
     
  19. Richard King

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    I only WISH that I could "fail" as well.
     
  20. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    DISH Network Agrees to Acquire Blockbuster Assets

    ENGLEWOOD, Colo., April 6, 2011 /PRNewswire/ -- DISH Network Corporation (NASDAQ: DISH) 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.

    Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995:

    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.

    About DISH Network

    DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides more than 14.1 million satellite TV customers, as of Dec. 31, 2010, with the highest quality programming and technology with the most choices at the best value, including HD Free for Life. Subscribers enjoy industry-leading customer satisfaction, the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com.

    SOURCE DISH Network Corporation
     

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