BLOCKBUSTER TURNAROUND!!!!

Feb. 11, 2011, 10:53 a.m. EST
Food For Thought: Netflix or Amazon Should Buy Blockbuster (BLOAQ, NFLX, AMZN, CSTR)

By 24/7 Wall St.

Reports have been circulating since late yesterday that Blockbuster Inc. (Pink Sheets: BLOAQ) has put itself up for sale rather than trying to emerge as a new operating company that can healthily exit bankruptcy. Figures vary wildly, but the WSJ has targeted "more than $300 million plus the assumption of certain liabilities " Here is some food for thought: Netflix, Inc. (NASDAQ: NFLX) or Amazon.com Inc. (NASDAQ: AMZN) should consider buying Blockbuster. Major risks, potential great rewards

It is true that Netflix, Inc. (NASDAQ: NFLX) eventually wants to move mostly to a streaming and digital download business model rather than a snail mail and digital model. The problem is that many users still refuse to join that aspect of the digital age and want to just play the actual discs. Will that hold true in 10 years? Not nearly as much as today, but many will still likely be playing discs in ten years.

Buying Blockbuster would generate immediate disc return locations for Netflix that users could drop movies off for nearly nothing and ultimately it could allow for Netflix to consolidate its shipping costs. Of course it also means that Netflix would be increasing its cost structure and bringing down its margins due to the brick and mortar costs rather than virtual costs.

And what about Amazon.com Inc. (NASDAQ: AMZN)? Amazon.com has fought the physical location and storefront model from its start. Most likely that will remain the case. It is very possible that this would compress its already shrinking margins too much and it might only contribute to its ongoing margin compression that has been seen of late. This could give central location pickups and would allow it to change is shipping cost model that has has had mixed results its finances for those who buy too much online where shipping costs eat into profits. Amazon.com has an $83 billion market cap, and if it did not want to acquire Blockbuster in cash to and assume the liabilities it could always do an offering.

If not Netflix or Amazon, perhaps Coinstar Inc. (NASDAQ: CSTR) should consider this an opportunity to secure it Redbox business (even if that means a Bluebox down the road). Coinstar has a $1.36 billion market cap today. Unfortunately, this might be the least 'synergistic' of the three.

Here is the REAL food for thought outside of an all or none acquisition Forget about the call for these firms to buy Blockbuster outright. What if any of these firms went into a joint-venture where they put up the capital for a super-minority or even a majority stake in the venture, but had a turnaround retail acquirer familiar with post-bankruptcy operations in the mix? There are many private equity firms that would jump at the opportunity to partner with any of these larger firms as a means to reduce the risks. The model could even be scaled down to where the firms only plan to operate in major metro areas down the road. Literally there could be 100 different ways to skin the cat here.

This is currently just some food for thought on an outright buyout, but the joint venture scenario could lead to a very interesting situation. Any of these deal possibilities would have some serious risks and some serious caveats. If structured properly, it could bring free money and ultimately could bring cost savings under the right terms.

Stay tuned

JON C. OGG

Ich hab die B-Shares gekauft und mache jeden darauf aufmerksam dass dies eine spekulative aktie ist! Die jediglich 10% meines portfolio einnimmt!

Fri Feb 4, 2011 10:37am EST

* "Twilight" studio demanding payment

* Blockbuster told studio it has no money

WILMINGTON, Del. Feb 4 (Reuters) - The independent studio behind the hit "Twilight" films wants a judge to force bankrupt movie rental chain Blockbuster Inc to pay its bills or force it to into liquidation, according to court documents.

Blockbuster (BLOAQ.PK) told Summit Distribution LLC that it would not pay $6.8 million it owed for DVDs shipped since it filed for Chapter 11 bankruptcy in September because it did not have the money, according to documents filed with a U.S. bankruptcy court in Manhattan on Thursday.

Blockbuster did not return a call seeking comment.

Bankruptcy gives companies breathing space to reorganize their debts in part by ensuring suppliers will be among the first paid.

If the company were to be forced into a Chapter 7 liquidation, a trustee would likely replace the management and Blockbuster could be forced to sell or close all of its operations to pay off its debts.

Blockbuster representatives spoke with Summit's management on a Jan. 28 conference call about unpaid bills for DVDs including the "The Twilight Saga: Eclipse," which was Summit's second-most popular DVD and No. 4 among all studios last year.

"To Summit's surprise and dismay, the debtors informed Summit that the debtors would not pay Summit with respect to products that were shipped post-petition (after the bankruptcy filing) because the debtors lacked the funds to do so," said a court document.

Summit's president, Stephen Nickerson, said in a court document that Blockbuster will take in $8.3 million alone from the "Eclipse" DVD and he called the unpaid bills a "significant hardship" for the small studio.

Blockbuster filed for bankruptcy in September, weighed down by its debts and stung by video-on-demand and competitors such as mail-order pioneer Netflix Inc (NFLX.O) and Redbox Inc, a Coinstar Inc (CSTR.O) unit that rents movies through kiosks.

Blockbuster, the largest video rental chain, has been working on a business plan that includes closing many of its nearly 3,000 U.S. stores and developing its online, mail and kiosk business. The plan would put billionaire Carl Icahn, once a significant shareholder, in control of the company.

Blockbuster obtained a $125 million loan from Icahn and a group of hedge funds to provide money to keep operations afloat during its Chapter 11.

The company faces a Friday deadline imposed by the Icahn group for its business plan, although the deadline could be extended.

http://finance.yahoo.com/news/Blockbuster-prepares-to-put-rb…

On Thursday February 10, 2011, 2:34 pm EST

NEW YORK (Reuters) - Blockbuster Inc. (Other OTC:BLOAQ.PK - News), which filed for bankruptcy last year, is preparing to put itself up for sale after creditors disagreed on plans to give the chain more cash, the Wall Street Journal reported on Thursday, citing unnamed sources.

Blockbuster now plans to seek buyers, the newspaper reported, saying that investor Carl Icahn and a consortium led by hedge-fund Monarch Alternative Capital are the leading contenders.

A spokesman for Blockbuster declined to comment.

Blockbuster shares were up 12.8 percent at 11 cents on the pink sheets.

(Reporting by Caroline Humer, editing by Gerald E. McCormick)

Bshares halte ich für 10% unterbewertet zu den Ashares!
Mein einkauf war 0,067$

Die story ist brandaktuell auf der wallstreet und in den amerikanischen medien! Auch falls sich schlussendlich keiner für blockbuster interessieren sollte! Es wird einen runup geben bis auf 0,60$!

Zitat von KimLannersDie story ist brandaktuell auf der wallstreet und in den amerikanischen medien! Auch falls sich schlussendlich keiner für blockbuster interessieren sollte! Es wird einen runup geben bis auf 0,60$!

Garantierst du mir denn die 0.60$? Ich wohne in Texas und hier sind alle Laeden schon seit langem dicht. Desweiteren hat sich hier ehhh immer jeder gefragt wie die Geld verdienen.

Also, gibst du mir ne Garantie wenn du son Statement abgibst?!

Nein ich geb dir keine garantie denn ich bin kein bondinsurer! Musstu googlen um eine insurance auf stocks zu bekommen!