Dish Network Buys Blockbuster

With Internet making things easier for movie-watchers, as downloads are getting each day more popular, some companies that work with rental services did not manage to get through the period of the Internet boom. A famous rental company that is included in this situation is Blockbuster, which even managed to turn its name into an expression when Hollywood movies are mentioned.

Rental movie store for sale

The company, which is famous around the whole world, was recently bought by Dish Network Corp. The Dish Network is a TV satellite provider and their final bid on Blockbuster was of U$ 320 million. Even though their offer was the whole amount, after negotiations which involved cash and inventory, the final value went down to U$228 million.

Besides Internet downloads, another reason to make Blockbuster sink into bankruptcy was Netflix’s growth in movie rental services. The executive vice president of sales, marketing and programming for Dish Network, Tom Cullen, said “Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for Dish Network.”

Blockbuster’s bankruptcy

It was in September 2010 when Blockbuster filed for bankruptcy to begin the process of approval to sell the company. The authorization to sell Blockbuster only came in March 2011, as the procedure was much more complicated because it involved movie companies. Some that Blockbuster is in debt with are Fox Studios, Warner Brothers and Paramount.

The federal judge that approved the sale of the company, Judge Burton R. Lifland, who works at the Federal Bankruptcy Court in Manhattan, said “There’s been more accomplished in one day in this courtroom than in the many weeks leading up to this day.” From that moment on, Blockbuster was authorized to put the business on sale.