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Blockbuster Dodges the Reaper (For Now)

Blockbuster Inc. has been able to slow its drift towards oblivion with a flurry of capital raising and refinancing. Yesterday, the video rental giant’s Chief Executive, Jim Keyes, announced a doubling of the company’s private note offering to $675 million. The influx of funds will let Blockbuster continue expanding its digital offerings and kiosk network. IR---Blockbuster-Reaper

“The new financing will allow the company to make investments designed to grow the business. . . In 2009, we’ve been cash flow starved, but we’ve just eliminated a lot of that pressure,” said Keyes.”

Keyes also got a dig in at rival Redbox, saying the following about the recent nastiness between Redbox and several major Hollywood studios:

“Redbox will have difficulty in purchasing titles,” said Keyes, who said he supported Hollywood’s position for a ‘vending rental window,’ which would keep hot new releases out of kiosks for a few weeks.”

Well, if there’s anything the last couple of years have taught us, it’s that taking on ever-increasing levels of debt NEVER comes back to haunt a company. How ’bout it, Insiders—has Blockbuster managed to roll back the doomsday clock by a few hours or a few minutes?

[via Reuters]

9 Responses to “Blockbuster Dodges the Reaper (For Now)”

  1. Visitor [Join Now]
    Louie [visitor]
    I work for VBG. To find out why this is important, click here.

    I think blockbuster is making a wise move here. They are using the kiosk in a windowed approach as well as they are able to support them via brick and mortar locations. I think with this approach what we will end up seeing is blockbuster surplanting red box as the market leader in kiosk because they will have studio support accross the board. Where I see red box hitting the wall next month as they will have to buy 60% of the titles at retail and will start hemoraging negative profits.

  2. Member [Join Now]
    moviecrazy

    A few minutes, they’re going down!

  3. Visitor [Join Now]
    Jonathan [visitor]

    I think it will help BB, but it doesn’t necessarily make me happy about it.
    I’m a big fan of RedBox and I’ve been “stiffed” a couple of times by BB.
    In a business sense, to survive, one needs to continually reinvent. BB should have started the vending business years ago.
    I see this as greed and big business working deals to try and force the “little dealer, little prices” guy out.

  4. Visitor [Join Now]
    Carson [visitor]

    Well, I’ll do what I can to help bring them down, I’ll just continue to use their Free Trials by mail to supplement the lack of free codes from Redbox.
    And with new TV shows starting up, their business is really going to drop, especially since network TV these days is better than a lot of the movies that come out…

  5. Member [Join Now]
    alans613

    More like a few seconds. BB will be history by the end of 2010.

  6. Member [Join Now]
    Alan Smithee [8traxrule]

    “And with new TV shows starting up, their business is really going to drop, especially since network TV these days is better than a lot of the movies that come out…”

    Oh yes- I just LOVE all the logos and stuff they put on the screen during the show, along with endless commercials that get repeated ad nauseum.

    • Visitor [Join Now]
      Carson [visitor]

      I remember those annoying logos and ads from when I use to watch TV live, but I watch all my shows on the internet now (Hulu.com or SurfTheChannel.com) Its way better, and its on when you want it.

  7. Member [Join Now]
    titanlady062404

    I have several codes for free block buster rentals.. there should be a place for bb codes…