Friday, April 1, 2011

Fierce bidding expected on Blockbuster (BLOAQ) Monday.

Once a titan in the movie rental industry, Blockbuster is heading to the auction block this Monday. A few potential buyers are Dish Network, Carl Icahn, South Korea's SK Telecom and a few other lesser known companies. The bidding is expected to be very robust as CNBC reported earlier. Regardless, the share price of blockbuster BLOAQ jumped over 31% with this announcement, closing at $0.12 a share.
As you may or may not know, I actually own a few shares of Blockbuster so I'm always a little bit on the edge of my seat why there is any news regarding this company.

I'm curious to see whoever buys Blockbuster, what will happen with its share price. And also, what will the new owner do with the company. My bet is that Dish Network will take this company over for the simple fact that Blockbuster over the years has built up a reputation (branding) in the entertainment industry. Almost everyone in the US knows Blockbuster, whether good or bad, they know it; and likely they associate the company with movies, games and entertainment rentals. Therefore it's likely in my opinion that Dish Network will show more interest since they are pretty much in the same industry.

We'll see.

1 comment:

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