|reply to AndyDufresne |
Re: 320 million is not a lot a money for this purchase
I agree. Blockbuster used to have 9000 stores and probably worth more than 10 billion dollars not too long ago.
The debt that Blockbuster had was probably the most problematic issue. The huge debt load is gone with the bankruptcy. Now that they've cut down to 1700 stores at locations that are more likely to be profitable, there's probably a decent amount of value there. There's actually a lot of smaller video chains that are expanding now that we've lost so many video chains in recent years.
It's now a much leaner Blockbuster that has existing deals for online distribution. A lot of that can help with retention for their Dish Satellite business by offering cheap or free online streaming for existing customers.