Today’s Blockbuster story comes from the good news/bad news file. The bruised and battered rental giant and its partner NCR have added 100 new Blockbuster Express kiosks in Arizona. The company has also announced the resignation of influential billionaire Carl Icahn from its board of directors.
Blockbuster Express Kiosks
Blockbuster’s partner in its kiosk venture, NCR, recently installed more than 100 new BB Express kiosks at Food City and Bashas’ supermarkets in Arizona. This puts the grand total of BB Express kiosks at about 4,000—less than a fifth of Redbox’s 22,000 installed boxes.
Carl Icahn Resigns
Icahn stepped down after a tumultuous term on Blockbuster’s board that saw the company’s share price drop from around $10 to less than 50 cents. Many are seeing the timing of Icahn’s resignation as a harbinger of things to come for the once-mighty Blockbuster.
Edward Woo, an analyst with Wedbush Morgan Securities, was surprised at Icahn’s resignation, as the billionaire owns a sizeable percentage of Blockbuster’s Class A and B shares. Woo said the following regarding Icahn’s stake in the company and the situation Blockbuster finds itself in:
“You would think that he would still care a lot. . . Given the recent pre-announcement by Blockbuster, the potential bankruptcy again of Movie Gallery, and the strength of Redbox and Netflix, things are looking rather tough for Blockbuster,”
Insiders, does Icahn’s “rats leaving the sinking ship” resignation move the Blockbuster death clock another minute closer to midnight? Will BB’s expanding kiosk business be a case of too little, too late? Let us know what you think in the comments.