Blockbuster’s future up for auction

By on Apr 4, 2011 at 9:34 AM
Services April 4, 2011

The fate of Blockbuster is now up for auction. On Monday Blockbuster’s next owner, and future, will be decided. According to Reuters, it’s possible that a new owner could close the video rental chain, liquidate it entirely, or continue operations in a bid to compete with the likes of Netflix and the growing number of online media streaming services. Reportedly, Dish Network Corp. and Carl Icahn have already placed bids for the company, and SK Telecom is also interested. Monarch Alternative Capital LP opened the bidding at $290 million in February when Blockbuster put itself up for sale, and bids last week needed to be less than $296 million to qualify. It’s unclear how much Dish or Icahn bid on Blockbuster, but Dish Network reportedly has plans to continue building Blockbuster’s online movie offering should it win the auction. After a new owner is decided on Monday, it will have to be approved by bankruptcy judge on April 7th before the deal can move forward. Blockbuster filed for bankruptcy in September 2010.

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  • JoeDroidBionic

    so the future is netflix

  • Anonymous

    Just donate the whole thing to charity;
    ‘it’s over Johnny, over I tell you, over!!’

  • http://twitter.com/peterjohn Peter John

    Crazy to think Blockbuster had the chance to buy Netflix for peanuts a few years ago.

  • bobomb

    Dear Blockbuster: AMF

  • Anonymous

    Just die already.

    Blockbuster is the reason I stopped renting movies. Even when Hollywood video went under….If I didn’t care to see it in theaters I just waited till it showed up on Cinemax.

  • http://www.whitehatmedia.com SEO Company

    Anyone else with me on this: The first of many?

  • Anonymous

    Bidding $290 million or even $100 million would be stupid, that business is dead. You would have to invest so much money to even revive that company. It would be more cost effective to just create a new business based on netflix or blockbuster. Netflix is obviously the winner but i wonder how they are gonna deal with cable providers later on with their streaming content. The cable providers are not happy with losing viewers and clogging up their bandwith to stream movies. Movie studios are also trying to provide their content other places like facebook.

  • The Grave Keeper

    Another business that was unable, or unwilling, to keep up with the times. RIP.

  • Mavricxx

    I’d like to see SK Telekom buy it and turn it into the next Verizon but GSM and BETTER, not to mention better affordable prices than T-Mobile that way if T-Mo falls we have another GSM carrier to fall back on.

  • http://www.TheGuruReview.net TGR

    Sad, they should have been ahead of Netflix in regards to digital distribution of movies. However, the Executive Team slept at the wheel and doomed the company. Sad…..

  • Anonymous

    So continues the circle of life? First Wherehouse (if you’re hold enough to remember) squashed all the mom-and-pop stores. Then Blockbuster came around and squashed Wherehouse as well as tangentially Tower Records. Now, it’s Blockbuster’s turn.

    It’s hilarious for me because there’s was a spot that used to be a Bob’s Big Boy, then it became a Boston Market and then flipped into a Blockbuster. I wonder if the spot is dead and empty again.

  • John

    This actually seems like a gold mine to me… shares under $1 and the company improvising. Blockbuster has many advantages towards Netflix. If blockbuster can set improved services like Netflix they have the advantage of renting you a movies 28 days sooner then Netflix could. I’ve noticed the Blockbuster around the corner have 50 customers at a time since they began the $1, & $2 rentals per night. They even have “We are hiring” signs up! 

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