Blockbuster Sells Irish Unit Xtra-vision For Up To $45 Million
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Saddled with debt and struggling to maintain sales amid competition from the likes of Netflix and Redbox, Blockbuster has sold Xtra-vision—its chain of nearly 200 retail locations in Ireland—to drum up some cash. The deal, potentially worth $45 million (€32 million), will give the company some much-needed “liquidity,” CEO Jim Keyes said, in a statement. Buyer Birchhall Investments is a new subsidiary of Irish investment group NCB Ventures.
The actual purchase price depends on Xtra-vision’s full-year results, which get reported in early 2010, according to RTE Business. Keyes added that the deal meant Blockbuster (NYSE: BBI) could focus more expanding its U.S. business through its rental-by-mail, online and kiosk initiatives.
SEE ALSO: Earnings: Blockbuster’s Revs Slip Amid Tough Competition, Lowers Guidance
Xtra-vision is Ireland’s largest chain of video stores; Blockbuster acquired it back in 1997. Tony Keating, formerly Xtra-vision’s finance director, will serve as its new CEO. Release.
Posted In: Entertainment, Movies, Money, M&A & Venture Capital, Venture Capital, birchhall investments, blockbuster
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