NCR Contemplating Acquiring Other Blockbuster Properties
According to an article at Home Media Magazine NCR Corporation might be contemplating acquiring some Blockbuster properties.
This comes from a statement made by NCR CEO Bill Nuti who told Bloomberg News the kiosk manufacturer was willing to spend millions to acquire third-party digital and by-mail rental properties.
It is well understood that Blockbuster needs to expand out its distribution network in various ways besides their stores such as Kiosks, DVD-By-Mail, and Digital Distribution in order to remain viable. But current financial state precludes their ability properly fund those ventures. As such, they have joined forces with folks like NCR who currently licenses the Blockbuster name for use on its Blockbuster Express DVD Kiosks because of the value of the Blockbuster Brand.
As Blockbuster reported its non-Blockbuster earnings report yesterday, it might open the door for NCR to acquire a business unit, distribution channel, or interest into Blockbuster itself. Gil Lauria, analyst with Wedbush Morgan Securities in Los Angeles says, “NCR at some point may decide to buy any piece of Blockbuster, depending on what happens to the company financially.”
It is understandable that NCR may be worried that if Blockbuster goes down, the value of that name also goes with it. As such, they are looking at ways that they might be able to both gain another distribution channel as well as bolster that reputation. Those goals might require them to purchase more assets from Blockbuster. As Lauria put it, “NCR is worried about its own business, and they are ready for any [third-party] scenario Blockbuster might entertain. If Blockbuster was to get in [further] trouble, NCR would be able to take some of those pieces.”

June 10th, 2010 at 12:18 pm
They are and they are going to outsource all American workers jobs as well. Another smart move, let’s not have any of our customers working!