I was thinking today why wouldn't the buyer be NFLX or CSTR??
The 28 day hold will hurt both NFLX and CSTR - NO DOUBT. It may not have shown much in the 1st QTR but it will in the second. When they both start feeling the hurt from not having new releases available (Blind Side, Avatar, Sherlock Holmes, and many more to come) -- it makes you wonder how long before they say -- Why not buy BBI and buy the new releases. That is provided that the studios did not negotiate the transfer of the agreement. But even if the studios did say it would not transfer with a buyout it would die at that point. NOW,
If NFLX buys BBI then they get the kiosks, and the stores (a few would be good for a distribution channel and still might make the studios happy), and the new releases, while pulling in all of the online business out there.
If CSTR buys them they get the stores as already stated and the new releases - they could care less about the kiosk -- they would stay with NCR but not have BBI's name on them, and the new releases to put in their Redbox machines. They would also put their hat in the online business.
Just my thoughts but it looks like a winner for NFLX in my opinion. Their stock price has risen to a point where they could use their stock to buy BBI and absorb the debt.
I really think it might be an option if BBI can get the bondholders in order and enough stores closed to be lean and mean.
That is what I thought too. However, even if they did not allow it to transfer wouldn't the 28 day window die at that point because no one would be able to rent a new release???? I guess Mom and Pop stores like Family Video could do it but those are few and far between now.