Blockbuster Auction Happens Monday - South Korean Company Considers Bid 
Home Theater News Industry-Trade News
Written by Dick Ward   
Thursday, 31 March 2011

Blockbuster is about to go up on the auction block with a "stalking horse" bid of $290 million.  There are plenty of companies rumored to be interested, including Amazon, Netflix and Redbox.  It makes sense that a competitor would buy the rental chain, but there's one potential buyer that's come right out of the blue.

SK Telcom is the largest wireless carrier in South Korea.  They account for right around 50 percent of the mobile market and they're looking for more.  According to an anonymous representative of the company, SK Telcom is looking for opportunities overseas and may put in a serious bid for Blockbuster.

Analysts like David Lee are perplexed.  "A consummated Blockbuster deal would be quite negative due to the large size of the company and its declining business," he says.  "No immediate synergies come to mind and the required restructuring of the company could be very costly." The only real advantage that can be seen is with content acquisition.  Blockbuster's strong relationship with studios could be what has SK Telcom so interested.

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