Dish’s Blockbuster buy approved by judge

By on April 7, 2011 at 11:46 PM.

Dish’s Blockbuster buy approved by judge

A bankruptcy judge on Thursday approved Dish Network’s winning bid and gave it the OK to acquire Blockbuster for $320 million. Dish’s bid topped other bidders including Cobalt Video, a group of hedge funds lead by Monarch Alternative Capital, and billionaire investor Carl Icahn earlier this week at an auction for Blockbuster’s business and assets. New York Judge Burton Lifland gave his approval in bankruptcy court, and Dish will now assume control of 1,700 remaining Blockbuster locations, the company’s DVD-by-mail business and its streaming video business. Now that a judge has approved the deal, Dish is expected to pay roughly $228 million for Blockbuster when factoring in the value of the fallen video giant’s remaining cash and other assets. Proceeds from the sale will help Blockbuster’s creditors, which include multiple movie studios and Carl Icahn, reclaim a portion of the $1 billion they are collectively owed. More →

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Dish Network wins Blockbuster auction

By on April 6, 2011 at 7:50 AM.

Dish Network wins Blockbuster auction

Pending approval at a hearing scheduled for Thursday, Dish Network will acquire Blockbuster Inc. following an auction that took place earlier this week. The company’s winning bid was approximately $320 million but the acquisition is expected to land at about $228 million in cash, taking into account Blockbuster’s inventory, available cash and other adjustments. Blockbuster was put up for sale at an auction on Monday following its recent bankruptcy filing, and several companies competed for control of Blockbuster’s business and assets. Dish’s winning bid topped several other bidders including Cobalt Video, a group of hedge funds lead by Monarch Alternative Capital, and billionaire investor Carl Icahn. “Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for Dish Network,” said Dish Network’s EVP of sales, marketing and programing, Tom Cullen. More →

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