Dish Network has won the bid for Blockbuster, writes The Hollywood Reporter. The bid was worth $320 million, beating out the previous suspected frontrunner Carl Icahn. After adjustments, the deal will see Blockbuster receiving $228 million in cash. The money will allow Blockbuster to pay back studios it owes money to.
Icahn was seen as a frontrunner because he was a longtime shareholder in Blockbuster and loaned it money during its bankruptcy process. His bid was $284 million.
Dish Network is owned by Charlie Ergen, a former professional poker player. Dish looks at Blockbuster as an opportunity to cross-promote and push services for Dish Network. One option would be to launch a broadband video service to compete directly with Netflix.