Update 2: Aug 14th: The total purchase price is $6.6 million, according to a new 8-K filing by Blockbuster. “Blockbuster purchased all of the outstanding membership interests of Movielink from MGM On Demand Inc., DIGICO Inc., SPDE – MF Holdings, Inc., Universal VOD Venture Holdings LLC, and WB – MF LLC for $6.6 million in cash, subject to adjustment for Movielink’s working capital at the closing.” More after the jump…
Update 1: August 10: So as I mentioned two days ago, Movielink’s actual acquisition price is much lower than the “less than $20 million” the WSJ said in its story — although that value may be cash plus assumption of liability. We’re told the actual cash is under $10 million, a big comedown from the rumored $50 million price just six months ago and a fire sale of sorts. This after the studios poured more than $100 million — some say as much as $150 million — into trying to build the service. And, after they missed numerous opportunities to sell by not wanting to include content licenses with the deal, according to one person familiar with the situation.
Blockbuster (NYSE: BBI) bought it from “MGM On Demand Inc., DIGICO Inc., SPDE – MF Holdings, Inc., Universal VOD Venture Holdings LLC, and WB – MF LLC,” according to its 10–Q just filed with the SEC. But, contrary to what we reported earlier today, that filing doesn’t include financial terms on the deal. (Thanks, Netflixxer, in the comments below.)
– The filing does mention a $7 million payment for a patent acquired during the first half of 2007. Blockbuster and Netflix settled their patent dispute earlier this year, in June. This was be the amount BB paid to Netflix, according to NFLX’s 10-Q filed here: “On June 25, 2007, the parties entered into a settlement agreement, which included a one-time payment of $7.0 million, agreeing to settle their differences and to dismiss the complaint and counterclaims with prejudice. On June 26, 2007 the parties filed a joint stipulation dismissing the litigation, and on that same day, the court entered an order dismissing the case.”