Englewood, Colo. - Dish Network envisions cross-marketing and service extension opportunities with Blockbuster, which it will acquire this spring for $228 million.
The No. 2 satellite TV service placed a winning $320 million bid in an overnight bankruptcy court auction that reportedly pitted it against SK Telecom of South Korea, a consortium of Blockbuster lenders, and a group of liquidators led by billionaire investor and major shareholder Carl Ichan.
Dish ultimately expects to pay about $228 million in cash for the video chain after adjustments for available cash and inventory. The deal is set to close in the second quarter.
Blockbuster filed for bankruptcy protection last September under pressure from DVD-by-mail and digital delivery services, and has since closed nearly half its 3,200 stores.
In a statement, Dish sales, marketing and programming executive VP Tom Cullen said, "Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities 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," Cullen added.