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Dish Network buys Blockbuster for $320 million

leftnode 15y ago
It makes me happy that a company that so blatantly laughed in the face of one of their competitors (Netflix) is now being sold on the chopping block for pennies on the dollar. Really makes Reed Hastings look like a visionary.
- pstuart 15y ago
  Redbox is another example of their lack of vision.
bryanh 15y ago
I don't really see any reason for Dish to do this. What value is there? Brand image? Maybe, but $320 million doesn't sound right.
- bradhe 15y ago
  Digital content distribution deals that blockbuster has cultivated. They don't give no shits about the stores.
zeeone 15y ago
What a bad move! A company of a dying type buys an already dead company. Nothing new or original to come out of this.
- HeyLaughingBoy 15y ago
  You think that's bad? I still see new video stores opening. What bank would possibly fund a new B&M video store in 2011?
pitdesi 15y ago
Funny response by Fast Company about what to do with it: http://www.fastcompany.com/1745065/blockbuster-bought-by-dish-for-320-million-what-next http://www.fastcompany.com/1745065/blockbuster-bought-by-dis...
brudgers 15y ago
Dish probably came out ahead by purchasing the entire company rather than letting Icahn win and then buying the relevant assets. If Icahn was chasing it, there was real-estate value there. And that appears to be the case when one considers that Dish only paid $190k per store. Based on $20k per store per year that's a 11% cap rate - and the worst performing locations have already been culled from the portfolio. Consider that $20k per store per year can probably be achieved with less than 10 Dish network subscription sales per month and the deal for corporate controlled retail locations makes more sense. All the rest of it - the streaming and content deals, kiosks, etc. is just more upside.
brianbreslin 15y ago
Few people probably realize that the Blockbuster Express kiosks all over the country in supermarkets and whatnot are owned by NCR who just licensed the name from Blockbuster, inc. Dish Network doesn't really benefit from those in this deal as far as I can tell. When BB filed for chapter 11, NCR sent out an email stating that it would not affect BBExpress kiosks in the slightest.

It makes me happy that a company that so blatantly laughed in the face of one of their competitors (Netflix) is now being sold on the chopping block for pennies on the dollar. Really makes Reed Hastings look like a visionary.

pstuart 15y ago
Redbox is another example of their lack of vision.

bryanh 15y ago

I don't really see any reason for Dish to do this. What value is there? Brand image? Maybe, but $320 million doesn't sound right.

bradhe 15y ago
Digital content distribution deals that blockbuster has cultivated. They don't give no shits about the stores.

zeeone 15y ago

What a bad move! A company of a dying type buys an already dead company. Nothing new or original to come out of this.

HeyLaughingBoy 15y ago
You think that's bad? I still see new video stores opening. What bank would possibly fund a new B&M video store in 2011?

pitdesi 15y ago

Funny response by Fast Company about what to do with it: http://www.fastcompany.com/1745065/blockbuster-bought-by-dish-for-320-million-what-next http://www.fastcompany.com/1745065/blockbuster-bought-by-dis...

brudgers 15y ago

Dish probably came out ahead by purchasing the entire company rather than letting Icahn win and then buying the relevant assets. If Icahn was chasing it, there was real-estate value there. And that appears to be the case when one considers that Dish only paid $190k per store. Based on $20k per store per year that's a 11% cap rate - and the worst performing locations have already been culled from the portfolio. Consider that $20k per store per year can probably be achieved with less than 10 Dish network subscription sales per month and the deal for corporate controlled retail locations makes more sense. All the rest of it - the streaming and content deals, kiosks, etc. is just more upside.

brianbreslin 15y ago

Few people probably realize that the Blockbuster Express kiosks all over the country in supermarkets and whatnot are owned by NCR who just licensed the name from Blockbuster, inc. Dish Network doesn't really benefit from those in this deal as far as I can tell. When BB filed for chapter 11, NCR sent out an email stating that it would not affect BBExpress kiosks in the slightest.