DISH Network has become the winning bidder for Blockbuster, it announced today (Wednesday). In a statement following the auction, the satellite TV service said that its bid was valued at approximately $320 million but that after "certain adjustments" -- particularly for Blockbuster's cash and inventory -- are made, DISH will actually pay approximately $228 million in cash for Blockbuster. It said it expected The Deal to close in the second quarter of this year. Acknowledging that Blockbuster continues to face "significant challenges," Tom Cullen, head of sales, marketing and programming for DISH, said in a statement "With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for DISH Network." The Blockbuster deal comes one day after DISH announced that it had signed a deal with Epix that will make more than 3,000 films from Paramount, MGM and Lionsgate available on its DishOnline service.
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