Satellite TV provider Dish Network has acquired Blockbuster Video’s assets in an auction
Hundreds of Blockbuster Video stores will be shutting their doors soon. The video rental company is in the process of being taken over by the Dish Network and major changes are coming.
The Dish Network, the second largest provider of satellite TV in the US, purchased the rights to Blockbuster Video and all of its properties for about $320 million in an auction. Last month, Blockbuster was given permission by a bankruptcy court to sell off its remaining assets in an attempt to reduce the $1 billion debt the company had built up.
The Dish Network filed documents with bankruptcy court over the weekend listing which Blockbuster stores it intends to keep open. The deal is expected to be finalized sometime in the next few weeks, giving the satellite TV provider control over the leases of almost 2,000 properties currently run by the Dallas-based Blockbuster Video.
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Blockbuster currently owns 1,751 stores in the US, but Dish Network only plans to keep about 600 of them open. That leaves over a 1,000 former Blockbuster properties that won’t have their leases renewed.
So far, Dish Network hasn't indicated that it will extend the leases of the multi-floor corporate headquarters in downtown Dallas or the 850,000 square-foot distribution center in McKinney, Texas .
At its peak Blockbuster operated about 4,000 stores in the US.
However, it appears that Dish Network only acquired the company to take advantage of its online video services and will only maintain a fraction of the physical video sites.The satellite TV provider hopes to release a digital streaming service that...Read the rest of the article at: