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
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.