Dish Network has snatched bankrupt Blockbuster away from an investor group led by Carl Icahn, lodging the winning bid of $320 million in the early-morning hours Wednesday, TheStreet.com reported. Icahn’s group had temporarily been the frontrunner with a bid of $310.6 million until Dish raised its offer from $307.1 million.
Dish isn’t saying what it plans to do with the movie rental company, but it apparently plans to keep it afloat, the story says.
Tom Cullen, executive vice president of sales, marketing and programming for Dish Network, issued a statement saying: "With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, 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."
The statement indicates Dish intends to use the purchase to gain a brick-and-mortar presence, the story says.
Nomura Equity Research’s Mike McCormack, analyzing the deal, wrote: "It is our understanding that Dish Network plans on maintaining the retail presence and will likely use the Blockbuster store fronts to cross-promote Dish Network. We could also imagine permutations where Dish Network would attempt to use Blockbuster’s physical DVD inventory as currency to further the kiosk partnership with NCR."