Dish Network Corp wins Blockbuster Inc auction for $320 million

Dish Network Corp wins Blockbuster Inc auction for $320 million

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Asia Bizz: Dish Network, which is the second largest satellite provider in the United States, won an auction bid to buy the bankrupt Blockbuster Inc for $350 million. Dish Network will look forward to expand its verticals by buying Blockbuster and moving into the movie rental chain.

Blockbuster Inc. was once upon a time the leader in video rentals across the United States and Charlie Ergen outbid at least 3 other bidders, which also included the likes of Carl Icahn – who is an activist investor.

Dish can now use Blockbusters online reach and could possibly start online products and deliver movies.

Recently, Dish also bought another bankrupt company by the name of DBSD North America, for around $1.4 billion. Dish will have to pay around $228 million in cash to get Blockbuster.

Tom Cullen, the executive vice president of sales said,

“Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for Dish Network.”

The second highest bid for Blockbuster was $310.6 million by Carl Icahn.