Blockbuster MEXICO stores sold to Mexican retail chain. Reuters article
MEXICO CITY, Jan 3 (Reuters) - Mexican retail chain Elektra, owned by businessman Ricardo Salinas, will
complete its purchase of local video and games rental company Blockbuster next week, according to people close to the deal.
Mexico's Federal Economic Competition Commission last month gave Elektra the go ahead to buy Blockbuster's video and videogame sales and rental business in Mexico, and Elektra plans to revamp the business as an on-demand digital video service, the people said on Friday"
Notice the part where it says, REVAMP AS AN ON DEMAND DIGITAL VIDEO SERVICE.
What some would call a complete and utter circle jerk! Speaking of Jerks...sorry couldn't spend time with you on New Years Romo (I saw the post you addressed to me her/him #$%$) had to take care of a few things.
No surprise. Wonder what price Elektra is paying for the Blockbuster chain. More likely they won't disclose the price. What do you think happened to the Los Americanas issue that would cause both sides to go to mediation?
"Dish Network wrote down its Blockbuster Mexico assets by $21 million, representing estimated fair value less selling costs, according to a regulatory filing."
Looks like same old same old, in keeping with the usual somber press making it look like Dish is selling something worthless and taking a bath in the process. Now reading in between the lines, Elektra is going to concentrate on digital "On-Demand". That statement means they have licensing to do so and guess who will reap the licensing fees? Going back to the statement by Reed Hasting saying that they (Netflfix) would like to get into VOD means that he does not have the licensing . Anotherwords Blockbuster has licensing agreements in place and now a Mexican company is going to run the operations and BB (the trust) will collect licensing fees.