Blockbuster (NYSE: BBI), which filed for bankruptcy in September, is now putting itself up for sale. The video rental chain says in a statement that by selling itself it will be able “to accelerate our Chapter 11 proceedings and move the company forward.”
Its 30-second pitch for why somebody might be interested: “The purchaser will be able to take full advantage of Blockbuster’s many strengths, which include an internationally recognized brand name, an exceptional library of more than 125,000 titles, millions of loyal customers, and a multi-channel content distribution platform. Because of its ability to deliver physical content (through DVDs) and digital content (through streaming), Blockbuster can offer customers the unique ability to access any movie, any time.”
The company’s own efforts to rebuild its business around those strengths have not been successful. It has long argued that it has the potential to be a successful digital player but has repeatedly failed to deliver. Most recently, it has been spending heavily to advertise that it has new titles from major studios before its competitors to do so — a pitch that has not slowed growth at rival Netflix (NSDQ: NFLX) but does seem to have impacted results at Redbox.
Blockbuster says that a new entity set up by a consortium of its debt holders has offered to buy it for $290 million — but it is now asking for additional offers from “financial and/or strategic” buyers. It expects the entire sales process to be completed within two months.