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06 Apr 2011 11:28

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Biz: Dish Network’s Blockbuster buyout: Good or bad?

  • $320 million the amount Dish Network plans to pay for the bankrupt Blockbuster
  • $228 million the amount the company plans to pay in cash for the video retailer source
  • » A competitive deal? Dish Network, known mostly for its satellite dishes and for being the satellite company that isn’t DirecTV, will earn a competitive advantage by branching out with Blockbuster, which has a large infrastructure, if not money to pay for said infrastructure. For example, Dish Network could also offer Blockbuster’s Netflix-like DVD service on top of their already-robust satellite service. It’s synergy, folks! Another way to look at this: Blockbuster shares were delisted after trading for less than $1 for nearly a year. Netflix shares are trading around $250.