By Gautham Nagesh - 04/06/11 02:51 PM EDT
Satellite provider DISH Network announced Monday it has won an auction for the assets of Blockbuster, which went bankrupt last September.
The winning bid was valued at $320 million, but Dish said after adjustments it expects to pay $228 million in cash to acquire the movie rental firm. Other bidders included investor and Blockbuster shareholder Carl Icahn.
“While Blockbuster’s business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster’s brand as a leader in video entertainment,” said DISH Network executive vice president Tom Cullen in a statement.
Blockbuster has 2,400 stores in the U.S. but plans to close another 700 this month. The firm's home movie rental business has been decimated by the rise of Netflix and online streaming video services. Dish expects to close the deal in the second quarter, pending approval from bankruptcy court.