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.
“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?