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Blockbuster reaches deal with investors for $290 million buyout
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The following comments relate to this news article:
article published on 24 February, 2011
Blockbuster has said this week that they have signed a $290 million deal that will sell the chain to a group of investors which will take it out of Chapter 11 bankruptcy.
The offer comes from Cobalt Video Holdco LLC, which consists of funds Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Varde Partners Inc.
Each of the funds hold ... [ read the full article ]
Please read the original article before posting your comments.
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AfterDawn Addict
1 product review
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24. February 2011 @ 06:03 |
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"An auction will allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future."
LoL...anyone who knows the future of BlockBuster wouldn't be dumb enough to buy stock...if the first order of business is to completely shut down operations, change the name, and start over from scratch, then this might work...but if they were going to do that, they wouldn't have started with BB.
I am amazed they got as much as they did; the debt load they are accepting is much, much more than the purchase price. Last I heard, their debts are over 1 billion...and that was a while ago. Do the math...
About 4500 stores all together. About 20% of those are privately owned...so that means they bought 3600 stores for about 1,290,000,000...or roughly $350,000 per store, for small local video shops that are in the red. Sure, they have the boxes (can't compete with redbox), and they have the disk/streaming service (can't compete with netflix)...but overall, all they got were some old buildings, a flawed corporate plan, and a name that is associated with poor service, bad selection, and insane prices by the vast majority of the people within driving distance of a store or kiosk.
Some stocks to avoid:
Monarch Alternative Capital LP
Enron
Owl Creek Asset Management LP
Stonehill Capital Management LLC
Confederated Slave Holdings
Varde Partners Inc
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AfterDawn Addict
4 product reviews
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24. February 2011 @ 11:15 |
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Originally posted by KillerBug:
"An auction will allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future."
LoL...anyone who knows the future of BlockBuster wouldn't be dumb enough to buy stock...if the first order of business is to completely shut down operations, change the name, and start over from scratch, then this might work...but if they were going to do that, they wouldn't have started with BB.
I am amazed they got as much as they did; the debt load they are accepting is much, much more than the purchase price. Last I heard, their debts are over 1 billion...and that was a while ago. Do the math...
About 4500 stores all together. About 20% of those are privately owned...so that means they bought 3600 stores for about 1,290,000,000...or roughly $350,000 per store, for small local video shops that are in the red. Sure, they have the boxes (can't compete with redbox), and they have the disk/streaming service (can't compete with netflix)...but overall, all they got were some old buildings, a flawed corporate plan, and a name that is associated with poor service, bad selection, and insane prices by the vast majority of the people within driving distance of a store or kiosk.
Some stocks to avoid:
Monarch Alternative Capital LP
Enron
Owl Creek Asset Management LP
Stonehill Capital Management LLC
Confederated Slave Holdings
Varde Partners Inc
Don't forget other defunct business Home State Savings Bank of Cincinnati, Midwest Federal Savings & Loan of Minneapolis Minnesota ,The Lincoln Savings and Loan, Silverado Savings and Loan.
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jookycola
Member
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24. February 2011 @ 11:18 |
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Confederated Slave Holdings
LMAO!
It cost more to rent 3 movies from a Blockbuster store than it does to get a Netflix account that lets me take out 3 at a time and not accrue ANY late fees. And if i watch and return the Netflix DVD's in 4 or 5 days i get 3 new movies free, and a week later 3 more again....FREE, and again. And in between waiting for the movies i can stream movies and/or TV shows on almost anything with a screen. All for the same cost as renting 3 DVD's from an actual BB Store
Where as if you rent the 3 DVD's from Blockbuster you pay $20+ bucks and return them to rent 3 more for another $20+ bucks, and so-on and so-on. Anyone that would rather piss away money, risk unreal late fees, and be treated like a piece of crap rather than do Netflix is crazy.
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AfterDawn Addict
4 product reviews
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24. February 2011 @ 11:48 |
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BB needs to buy a small store spot,maybe 1 every other 80 miles, have a solid online system that can be used by the store that any movie can be returned to the store for free or to the online system for a small fee.
Plans revolve around subscriptions, 5$ for 1 out at a time, 10 for 2, 15 for 3 and 25 for 5. You can purchase a premium subscription for 10$ more and all fees are waved, as well as you being at the top of all throttling.
5$ more and you can take games out as well on any plan at 50% of the max out at a time.
This works in 29 day cycles if you have anything over from the last period it counts in the new one.
You can also pay 5$ a month for full coverage of accidental damage, lost discs may be replaced by the consumer or you pay the going rate for a rental disc which is 15% for a film or 40$ for a game.
The stores themselves stock current and older hits that are watched the most, if a store dose not have it they can order it in for you for a 3$ fee and mail it to you for 2$ and there is a LCD board/tv that lists local(to the store) spacial ordered games and discs, if soemone requests an item someone else has it out the person that has that item is called and asked to bring it in for a 2$ credit.
Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.
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lissenup2
Suspended permanently
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24. February 2011 @ 13:28 |
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Originally posted by KillerBug:
"An auction will allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future."
LoL...anyone who knows the future of BlockBuster wouldn't be dumb enough to buy stock...if the first order of business is to completely shut down operations, change the name, and start over from scratch, then this might work...but if they were going to do that, they wouldn't have started with BB.
I am amazed they got as much as they did; the debt load they are accepting is much, much more than the purchase price. Last I heard, their debts are over 1 billion...and that was a while ago. Do the math...
About 4500 stores all together. About 20% of those are privately owned...so that means they bought 3600 stores for about 1,290,000,000...or roughly $350,000 per store, for small local video shops that are in the red. Sure, they have the boxes (can't compete with redbox), and they have the disk/streaming service (can't compete with netflix)...but overall, all they got were some old buildings, a flawed corporate plan, and a name that is associated with poor service, bad selection, and insane prices by the vast majority of the people within driving distance of a store or kiosk.
Some stocks to avoid:
Monarch Alternative Capital LP
Enron
Owl Creek Asset Management LP
Stonehill Capital Management LLC
Confederated Slave Holdings
Varde Partners Inc
Actually, I was thinking that a good risk might be to buy up a bunch of shares @ .14/share now and hopefully the investors will revamp the whole business model to be competitive with Netflix, Family video and Redbox. NEVER EVER cast a dying business as being down and out completely, especially when it's being bought. I know if I bought BB, I'd have that up and running with the best of the others turning a major profit, but that's just me.
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biglo30
Senior Member
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24. February 2011 @ 19:50 |
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They should have shut down operations a long time ago.
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Staff Member
4 product reviews
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24. February 2011 @ 21:23 |
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Originally posted by lissenup2:
NEVER EVER cast a dying business as being down and out completely, especially when it's being bought. I know if I bought BB, I'd have that up and running with the best of the others turning a major profit, but that's just me.
Tell that to MySpace and its $600 million buyout from Rupert Murdoch...lol
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AfterDawn Addict
1 product review
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24. February 2011 @ 21:47 |
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I almost bought bb stock when it hit 0.40, but then I looked at the debts, the low income, and the bad name, and realized that the stock wasn't worth as much as toilet paper.
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duke8888
Junior Member
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25. February 2011 @ 09:06 |
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Originally posted by KillerBug:
"An auction will allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future."
LoL...anyone who knows the future of BlockBuster wouldn't be dumb enough to buy stock...if the first order of business is to completely shut down operations, change the name, and start over from scratch, then this might work...but if they were going to do that, they wouldn't have started with BB.
I am amazed they got as much as they did; the debt load they are accepting is much, much more than the purchase price. Last I heard, their debts are over 1 billion...and that was a while ago. Do the math...
About 4500 stores all together. About 20% of those are privately owned...so that means they bought 3600 stores for about 1,290,000,000...or roughly $350,000 per store, for small local video shops that are in the red. Sure, they have the boxes (can't compete with redbox), and they have the disk/streaming service (can't compete with netflix)...but overall, all they got were some old buildings, a flawed corporate plan, and a name that is associated with poor service, bad selection, and insane prices by the vast majority of the people within driving distance of a store or kiosk.
Some stocks to avoid:
Monarch Alternative Capital LP
Enron
Owl Creek Asset Management LP
Stonehill Capital Management LLC
Confederated Slave Holdings
Varde Partners Inc
You are so right about the BB deal they are a big bust and yes they are so poor in handling mail order dvd service. They pulled every store out of Western Pa and to tell you the truth I really hate them with a passion. Great comments
This message has been edited since posting. Last time this message was edited on 25. February 2011 @ 09:07
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dave817
Newbie
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25. February 2011 @ 10:52 |
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I've had Blockbusters 3x by mail with in-store exchange, unlimited per month, keep as long as I want. When I return a store DVD, I get one in the mail within 2 business days. I have trouble watching 6 DVDs a week that I can get for the $20/month. I get 3 new releases every Tuesday from my local store, 1 mile away. That's sure better than getting old DVDs from redbox for one night or netflix slow mail delivery. My DSL isn't fast enough to download movies.
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jookycola
Member
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25. February 2011 @ 13:03 |
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Quote:
dave817 Newbie
I've had Blockbusters 3x by mail with in-store exchange, unlimited per month, keep as long as I want. When I return a store DVD, I get one in the mail within 2 business days. I have trouble watching 6 DVDs a week that I can get for the $20/month. I get 3 new releases every Tuesday from my local store, 1 mile away. That's sure better than getting old DVDs from redbox for one night or netflix slow mail delivery. My DSL isn't fast enough to download movies.
I always wonder when i read something like this and then see that the poster is a newbie if it's a "ringer" from a company doing spin controll. Like maybe this guy is a store owner trying to hype it up. It's just so suspect when the company is universally hated and one brand new poster comes from out of nowhere to praise it.
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wiseguy0
Junior Member
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25. February 2011 @ 14:09 |
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You're probably right to be cynical, Jooky, but I have the mail service and love it too. More movies than I can watch, new releases faster, and now games at no extra charge! The on demand streaming sucks, but I only want to watch movies in their uncompressed dolby digital glory anyway.
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AfterDawn Addict
1 product review
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26. February 2011 @ 05:12 |
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Originally posted by wiseguy0:
You're probably right to be cynical, Jooky, but I have the mail service and love it too. More movies than I can watch, new releases faster, and now games at no extra charge! The on demand streaming sucks, but I only want to watch movies in their uncompressed dolby digital glory anyway.
I use the streaming a whole lot more than the disks; I too get 6 disks a week; blockbuster may have the "edge" by allowing you to drive down to the store for returns...but that isn't much of an edge when the closest 6 stores are all now pawn shops. Anyway, netflix turnaround time is only 3 days, and the post office works 6 days a week...so I get the same service without needing to drive to the store for returns.
...I guess netflix is a bit slower on getting new movies...I really don't notice too much...there are not many new titles that I am just dieing to see ASAP and can't wait a month for.
The games deal is nice...I don't know how well it is actually handled, but I figure it will either do well or force gamefly to adopt fair pricing. Either way, it is a good thing.
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puterman
Junior Member
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26. February 2011 @ 11:21 |
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Originally posted by jookycola:
Quote:
dave817 Newbie
I've had Blockbusters 3x by mail with in-store exchange, unlimited per month, keep as long as I want. When I return a store DVD, I get one in the mail within 2 business days. I have trouble watching 6 DVDs a week that I can get for the $20/month. I get 3 new releases every Tuesday from my local store, 1 mile away. That's sure better than getting old DVDs from redbox for one night or netflix slow mail delivery. My DSL isn't fast enough to download movies.
I always wonder when i read something like this and then see that the poster is a newbie if it's a "ringer" from a company doing spin controll. Like maybe this guy is a store owner trying to hype it up. It's just so suspect when the company is universally hated and one brand new poster comes from out of nowhere to praise it.
Dave I'm with you.... I would much rather get the new releases on the day they're released, not a month later. And NO jooky....I don't work for BB. Just a satisfied with their convenience customer. It may not be a business model for everybody, but for others like us it does work. Maybe people should be looking at management to see why they're losing money. I guarantee the honchos in charge are gonna walk away with alot of money in their pockets!!
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