DALLAS - A new chapter unfolds for Dallas-based Blockbuster after an eight hour overnight bidding war during a bankruptcy court auction.
Dish Network won with a bid of $320 million. Dish expects to pay $228 million in cash.
Analysts said it's the best likely scenario for the survival of bankrupt Blockbuster.
Dish Network, based in Colorado, said it wants to re-establish Blockbuster as a leader in video rental sales. Analysts said that means Blockbuster will be able to re-organize instead of having its assets sold off by liquidators.
Mike Davis, an economics professor with Southern Methodist University's Cox School of Business said those of us who love to rent movies are likely to benefit. Davis believes with Dish Network in the picture and a desire to keep Blockbuster alive, more creative video rental ideas are likely on the horizon.
No word yet from Dish Network on how it plans to keep Blockbuster's brand alive; but, analysts said, for now, it means jobs will be spared.
The deal still needs final approval from a U.S. bankruptcy judge. Dish is hoping to make the deal official by this summer.
Dallas-based Blockbuster went into bankruptcy last September when it closed half of its 3,700 stores. When asked for comment on Wednesday, Blockbuster employees told News 8 they are being told not to comment.