Memo to film studios from Blockbuster: If you don't give us access to your movies before they go to Netflix and Redbox, you won't get much shelf space for your DVDs.
That was CEO James Keyes throwing down the gauntlet on Thursday as Blockbuster announced it had lost $65 million in its first quarter, reversing last year's $28 million profit.
It wasn't the only thing reversing on Thursday. During the regular session on Wall Street, Blockbuster shares rallied 16% to 50 cents, but after the earnings were released, shares sunk by 24%.
Investors and analysts were spooked -- yet again -- by Blockbuster's dwindling cash and lingering debt, a persistent problem that could eventually lead to bankruptcy protection for Blockbuster and big losses for equity investors.
But the nation's top bricks-and-mortar renter of movies still has a few things to crow about, so Keyes indeed crowed.
He noted that Movie Gallery and its Hollywood Video are disappearing,...
That was CEO James Keyes throwing down the gauntlet on Thursday as Blockbuster announced it had lost $65 million in its first quarter, reversing last year's $28 million profit.
It wasn't the only thing reversing on Thursday. During the regular session on Wall Street, Blockbuster shares rallied 16% to 50 cents, but after the earnings were released, shares sunk by 24%.
Investors and analysts were spooked -- yet again -- by Blockbuster's dwindling cash and lingering debt, a persistent problem that could eventually lead to bankruptcy protection for Blockbuster and big losses for equity investors.
But the nation's top bricks-and-mortar renter of movies still has a few things to crow about, so Keyes indeed crowed.
He noted that Movie Gallery and its Hollywood Video are disappearing,...
- 5/13/2010
- by By Paul Bond
- The Hollywood Reporter - Movie News
Add Blockbuster to the list of companies that could use a bailout right about now.
With $300 million in debt due in August, the nation's top old-style video rental firm confirmed Tuesday it has sought the help of a law firm to help it raise capital.
Wall Street, though, decided early in the day that the hiring of Kirkland & Ellis signaled that Blockbuster could face bankruptcy, so its shares plunged 77% to 22 cents before trading was halted for the rest of the day.
But Blockbuster spokeswoman Karen Raskopf said Wall Street was off the mark. "We do not intend to file for bankruptcy," she said.
Raskopf said Blockbuster's options include a retreat to its capital management plan, whereby it operates the business on the cheap in order to meet its financial obligations.
"We hope we don't have to do that, because we have lots of plans to grow our business," she said.
With $300 million in debt due in August, the nation's top old-style video rental firm confirmed Tuesday it has sought the help of a law firm to help it raise capital.
Wall Street, though, decided early in the day that the hiring of Kirkland & Ellis signaled that Blockbuster could face bankruptcy, so its shares plunged 77% to 22 cents before trading was halted for the rest of the day.
But Blockbuster spokeswoman Karen Raskopf said Wall Street was off the mark. "We do not intend to file for bankruptcy," she said.
Raskopf said Blockbuster's options include a retreat to its capital management plan, whereby it operates the business on the cheap in order to meet its financial obligations.
"We hope we don't have to do that, because we have lots of plans to grow our business," she said.
- 3/3/2009
- by By Paul Bond
- The Hollywood Reporter - Movie News
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