Blockbuster has begun the process of selling the company, and has announced a "stalking horse" bidder with an opening bid of $290 million. From the Blockbuster announcement:
In conjunction with this process, Blockbuster has entered into an asset purchase agreement with a "stalking horse" bidder, Cobalt Video Holdco, LLC, a limited liability company formed by funds managed by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Värde Partners, Inc., each of which is a secured noteholder of the Company. In addition, Blockbuster has filed a motion seeking authorization from the U.S. Bankruptcy Court for the Southern District of New York to conduct an auction process for the Company. The auction process is designed to achieve the highest and best offer for the Company's assets and would be conducted under the Court's supervision and in accordance with Section 363 of the U.S. Bankruptcy Code. The Cobalt agreement serves as the "stalking horse" bid in the auction, which sets the floor or minimum acceptable bid.
Thanks to my Dad for sending this in.
Netflix should buy the physical stores ... add to their DVD stock/reserves
Posted by: FR | February 22, 2011 at 10:34 AM
After Netflix buys BB stores maybe Amazon should buy Borders stores? (shakes head in disbeleif)
I still think BB will be bought by whoever bought Circuit City. They will sell the properties and make it online only. If the big 2 carmakers can come out of bankruptcy - albeit with all of our taxpayer money given to them - then BB can make it.
Posted by: Bob Emmerich | February 22, 2011 at 10:59 AM
I've been saying it for over a year. Netflix needs to buy blockbuster close the stores they are going bye bye anyway & add their DVD stock to theirs. Blockbuster has movies that does not
Posted by: Bobby | February 22, 2011 at 12:17 PM
hmmm no jv42 comments on blockbuster stories......weird.
Posted by: Really???? | February 22, 2011 at 08:32 PM
@ Bob Emmerich....No one bought Circuit City dude. That's part of the reason that once mighty company is now long gone.
Frankly, I don't think it's wise for anyone to purchase Blockbuster. There's no real value there. The brand is completely destroyed and is merely laughed about these days. The video store in general is now regarded by anyone who isn't stuck in the dark ages as antiquated and obsolete. I don't think it's worth the money for Netflix to purchase them just to acquire their DVDs. It's best to just let them go into Chapter 7 and liquidate the entire company and be done with it, much like recently happened with Movie Gallery/Hollywood Video.
And I say this as someone who once upon a time actually supported Blockbuster and wanted them to do well...Go figure.
Posted by: vio | February 22, 2011 at 08:56 PM
Whoever buys them should rename them and add an all you watch streaming service along with having stores & disc by mail? Amp up the game rentals with the service?
I don't know if that would work?
First who wants to buy them? That's the sad part....
Who knows what will happen with Blockbuster?
Posted by: Crow550 | February 23, 2011 at 02:56 AM
Vio meet Cicuit City, Circuit city meet Vio.
http://www.circuitcity.com/indexcc.asp?SRCCODE=CCDGOOBR1&cm_mmc_o=mH4CjC7BBTkwCjCECjCE
Posted by: rjejr | February 28, 2011 at 11:42 AM
Circuit City has 23,000 "likes" on Facebook dude. Maybe you can join them:
http://www.facebook.com/CircuitCity
2009 old news:
http://consumerist.com/2009/05/tigerdirect-parent-company-buys-circuit-city-website.html
And their back...
http://www.neowin.net/news/circuitcitycom-is-backtotal-copy-of-compusa--tiger-direct
Posted by: rjejr | February 28, 2011 at 11:53 AM