Have a cool $290 million or so burning a hole in your pocket? You could be the new owner of Blockbuster, which has put itself up for sale after an inability to complete a recapitalization plan with its creditors.
A holding company made up of several of BB’s largest creditors has submitted an opening bid of $290 million. Such “stalking horse” bids are used to prevent lowball offers. Other interested parties now have about 30 days to submit their offers. The closing of the BB deal is anticipated to occur by April 20 of this year.
Blockbuster CEO Jim Keyes offered the following in a press release put out by the company:
“By initiating a sale process at this time, we intend to accelerate our Chapter 11 proceedings and move the Company forward. An auction will allow the Company to invite competing bids from both strategic and financial investors. This will also allow for the consolidation of ownership of the Company to those with a clear and focused vision for Blockbuster’s future . . . The purchaser will be able to take full advantage of Blockbuster’s many strengths, which include an internationally recognized brand name, an exceptional library of more than 125,000 titles, millions of loyal customers, and a multi-channel content distribution platform. Because of its ability to deliver physical content (through DVDs) and digital content (through streaming), Blockbuster can offer customers the unique ability to access any movie, any time.”
What do you think the final selling price for Blockbuster is going to be, Insiders? Will the buyer get their money’s worth?
(via The Wrap)