Your local Blockbuster store may have gone dark months ago. However, that doesn't mean that the chain is dead. DISH Network is coming in to save the day -- or at least what's left of the company. The satellite TV provider just announced plans to purchase the movie rental chain for $320 million.
After the transaction is complete, DISH Network get all of Blockbuster's remaining assets, including cash and inventory.
"With its more than 1700 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," said Tom Cullen, DISH Network's executive VP of sales, marketing and programming. "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."
So does that mean that DISH Network will keep the remaining stores open? Add more rental kiosks into grocery stores and other retail chains? The company has yet to announce detailed plans. Of course, we have to assume that along with the Blockbuster brand, DISH Network will score Blockbuster's customer list, as well as all of the rights and technology associated with Blockbuster's online streaming service.
Blockbuster was founded in Dallas, Texas in 1985. At one point, it had over 7,000 stores throughout the Americas, Europe, Asia and Australia. Due to mounting pressure from services, such as Netflix and Redbox, Blockbuster began shuttering its stores. The company then filed for bankruptcy in September 2010.
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