Dish Network, the satellite television services provider, has secured the winning bid for the once formidable video rental chain Blockbuster.
The winning bid in the bankruptcy auction was valued at about $320 million.
After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, Dish Network “expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur in the second quarter of 2011.
The Dish Network succeeded at besting rival bidders like South Korean wireless operator giant SK Telecom.
Dish’s successful Blockbuster buyout comes just two months after the company acquired another bankrupt powerhouse – mobile satellite services company DBSD North America. That deal was worth $1 billion.
“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,” said Tom Cullen, executive vice president of Sales, Marketing and Programming 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.”