That $5 billion bid made no sense for a Private Equity firm. They were not going to flip that spectrum, even if the FCC gave them everything they asked for.
Thanks. That is what I was thinking.. Another question is what happens to the 1.4 proceeds..
Assuming the sale clears the hurdle, do you think old TSTRQ commons could be in the money? At one point, they filed to wipe the commons and issue new shares to the preferreds, but that filing was pulled.
Terrestar Corp is the parent of Terrestar Networks, which is the company that Dish bought assets from (Satellites, 2 Ghz spectrum)
Terrestar Corp is TSTRQ which was in Ch. 11 (but the shares are not cancelled) They held the 1.4 spectrum.
TerreStar Corporation, which filed for voluntary chapter 11 protection on February 16, 2011, holds 64 government licenses of 8 MHz of nationwide terrestrial spectrum in the 1.4 GHz band, covering more than 312 million people (the so called "1.4 Spectrum") to use the spectrum for high-speed data, or so-called 4G, networks. When adopting its service rules for these bands, the FCC established a flexible regulatory and licensing framework in order to promote the provision of new and technologically innovative services. Licensees may provide both fixed and mobile services including wireless internet, high speed data as well as advanced two-way mobile and paging services. These assets including TSC's equity interest in Terrestar Holdings Inc. ("TS Holdings") are now for sale.
Are you sure it is Terrestar's 1.4 spectrum being auctioned on the 16th? If so, that will be very telling. TSTR commons got screwed with an ultra low valuation of their spectrum assets in CH 11. I believe that if the 1.4 sells for over $600m that would have put the old TSTR commons in the money. If I recall the company used a 3rd party (blackstone??) to try and say the spectrum was only worth around 200 million in order to jettison the claims of the commons. There was a good fight put up by a few of the shareholders to expose the farce, but they were basically laughed out of court.
Nice Find. The September article is interesting as well. How can a dead brand that is not even being marketed beyond the Dish offering serve up those kind of numbers?
Perhaps a planned demise of the stores in order to rise from the wreckage as the undisputed champ of international digital delivery?
It was reported earlier this month that BB UK would be closing 76 stores, now there are reports showing all Blockbuster UK stores will be shuttered next month.
What’s in Store for Blockbuster Brand: Digital Expansion
Blockbuster may have gone bust as a physical rental chain for movies and games, but the brand will live on as a digital player for Dish Network.
“We continue to see value in the brand as we expand our digital offerings,” said Dish CEO Joseph Clayton during a third quarter earnings call with analysts.
Dish currently operates the Blockbuster @Home package, which features over 20 entertainment channels and access to over 25,000 VOD titles, including movies and TV shows, that can be streamed to computers and mobile devices.
Linear channels offered as part of the package include HD feeds of Epix, the Sony, Universal and MGM movie channels, Hallmark Channel and Logo.
Dish said it plans to invest more in that service, formerly known as Blockbuster Movie Pass, since it continues to own the licensing rights to the Blockbuster brand and its digital video library.
Dish still has the opportunity to reap more coin out of the brand it took over out of bankruptcy in 2011 for $320 million — if it exploits it in the right way. Despite its downfall, Blockbuster still has enough brand cachet to attract consumers and help Dish compete with the likes of subscription-based streaming services from Netflix, Hulu Plus and Amazon.
Netflix earned $700 million of digital revenue in the third quarter, the company said. And all digital platforms saw revenue rise 24% during the same frame to $1.6 billion, according to the Digital Entertainment Group. Broken out, subscription-based VOD services earned $815 million, up 33% over the same year-ago-period, while VOD earned $468 million, up 2.8%. For the year, subscription-based VOD is at $1.6 billion so far (up 5.6%), while VOD is at $2.3 billion (up 32%).
If Dish can compete for even a small share of that growing area of the home entertainment biz, Blockbuster could remain a player for years to come.
So far, Dish promotes Blockbuster @Home as another HBO, Showtime an
I think 'ol Erik knows more than he can print.. "Clayton said with elaborating..'
If you look at the current digital issue of Home Media Magazine there is quite a bit of nostalgia there for this once dominant company.
Dish Looking to ‘Improve’ Blockbuster @Home
12 Nov, 2013
By: Erik Gruenwedel
The Blockbuster store will soon be history. Not so for the brand.
The Blockbuster store will soon be history. Not so for the brand.
Dish Network, which acquired Blockbuster and its licenses in 2011, has big plans for the rental icon — except they don’t involve packaged media.
In a Nov. 12 fiscal call, Dish CEO Joseph Clayton said the recent decision to shutter all remaining corporate-owned Blockbuster stores (and put Blockbuster Mexico up for sale) underscored the reality that, according to him, the American consumer today is largely receiving his or her content electronically as opposed to physically. And Clayton said the original Blockbuster business model was predicated primarily on the physical distribution of video.
As a result, Dish is retaining all licensing rights to the Blockbuster brand as well as other key digital assets, including the company's significant video library and digital technology.
“We continue to see value in the brand as we expand our digital offerings,” Clayton said without elaborating.
Specifically, Dish is keeping its nascent Blockbuster @Home streaming movie service fully functioning. With 15 linear channels and a large number of digitally streamed movies (reportedly 25,000 titles), Clayton characterizes @Home as an add-on service to Dish’s satellite TV multichannel video program distribution platform — not dissimilar than HBO, Showtime, Cinemax, Starz, and Comcast’s Xfinity Streampix.
“We charge $10 a month for it. And we give it away free for 90 days when you purchase a Hopper (DVR), one of our better programming packages,” Clayton said. “It is an important part of our programming mix. And we'll look to improve upon that service as we go forward.”
So they are shopping for a buyer??
Also, when will we see the outcome from the Lojas mediation? No mention of this in the SEC filing.
oops. I was off by a day..
Anyone else think we possibly receive some info on the next phase manana?
I am locked and loaded. GLTAL
It is quite disgusting.. I guess we just have to learn their tricks and go along for the ride. On that note, maybe I can pick up some GSAT and FNMA before they run..
Doesn't look like they will open the OTC today..