News: Blockbuster planning to sell company

The juggernaut of DVD and Blu-ray rental companies, Blockbuster has started the process to sell itself to an investor group.

In a statement issued today, Blockbuster announced it has “entered into an asset purchase agreement with a ‘stalking horse’ bidder, Cobalt Video Holdco LLC.” Cobalt is a company formed by funds managed by four capital firms, each of which is a secured noteholder of Blockbuster.

The sale is intended to accelerate Blockbuster’s banruptcy proceedings, Jim Keyes, chairman and CEO, said in the statement.

The press release also said that Blockbuster expects its stores, DVD vending kiosks, mail service and digital movie delivery to continue operations throughout this process.

What will this mean for the DVD and Blu-ray industry? Only time will tell.

So, you tell us… what’s your preferred way of watching movies? Renting on DVD or Blu-ray? Buying the discs? Downloading? And if you do rent or buy DVD titles, who do you use, Blockbuster, Netflix or another retailer?

About S. Clark

Sam Clark is the former Managing Editor/Online Editor of Video Business magazine. With 19 years experience in journalism, 12 in the home entertainment industry, Sam has been hooked on movies on since she saw E.T. then stared into the sky waiting to meet her own friendly alien. Thanks to her husband’s shared love of movies, Sam reviews Blu-ray discs in a true home theater, with a 118-inch screen, projector and cushy recliners with cup holders.