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Dish Network Corp. Message Board

  • mplecas7 mplecas7 Oct 10, 2013 5:38 PM Flag

    I wouldn't be suprised if Icahn were to surface in some form related to Ergen's plans

    We already know that the two have worked together in rather sly ways on at least two occasions which are key aspects of the so called "Sienfeld" longterm plan. During the Blockbuster 363 sale both Dish and Icahn were active bidders, Icahn having been heavily involved in Blockbuster for many years as the largest shareholder, garnered himself the position of BOD's director as well as placing 3 of his closest, longtime inner circle men in the BOD which following his successful removal of then CEO Antiocco and replacement of Keyes Icahn had complete control of the company which allowed him to steer them straight into BK much faster than had Antiooco remained in charge and devoted to Blockbuster success.
    Icahn shortly before BK sold enough shares to get under the 5% reporting threshold, selling for huge losses from original purchase prices and calling Blockbuster his worst investment ever. All of this only to re-emerge during BK, as many retail shareholders predicted, having accumulated a blocking position in the securred notes of over 30% purchased roughly at 50% of face.
    After negotiations fell through in which Icahn offered to infuse an additional $300 or so million into bolstering Blockbuster's digital segment, the only profitable line of their business, in exchange for full control and planned to liquidate all physical assets estimated to bring in around $300-350 million, or in other words the same amount as the winning bid from Dish. No deal was worked out with the other creditors so it went to a 363 asset sale.
    This auction was a mess, very strangly conducted, lasting well into the night at which point the parties moved to one of Icahn's offices to complete behind closed doors what amounted to a winning bid equal to the liquidation value of physical assets, just a few million above Icahn's last bid which despite all his interest refused to increase, allowing Dish to walk away with a no loose purchase.
    Next move, Icahn sells Ergen his LS2 debt.

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    • So from these actions we know that Blockbuster's digital line of business was not included in the assets auctioned otherwise there's no way the winning bid is equal to liquidation value, rights to the brand name also not included, if they had been we would have seen more use of the worldwide recognized brand than a strickly limited to "Blockbuster at Home" trademark involving the Blockbuster name.
      We also know through an NCR lawsuit over use of the Blockbuster Express branding of their kiosks that a special trust was created in I believe 2009 in which intellectual property was placed for the purpose of protecting it and any liscencing of it from a possible future BK filing.
      So clearly there is much more to be revealed upon the resurrection in full of Blockbuster as a digital storefront.
      Why does Icahn sell his nice chunk of LS2 debt on the down low to an Ergen related entity, likely to help facilitate a mutually benefitial plan which aims to take.the delivery of both tv everywhere and Blockbuster on demand to a new level.

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