Digital Home Thoughts: Blockbuster up for Bid

"Home video chain Blockbuster Inc. has opted to put itself up for sale after a previous bankruptcy reorganization plan collapsed and its business continued to deteriorate over the holidays. The struggling Dallas company submitted a plan Monday for an auction process to U.S. Bankruptcy Court in New York. A holding company formed by four of its largest creditors — Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners — has put in an opening "stalking horse" bid of $290 million."

Seems the creditors are making sure that it doesn't get sold off for a lowball bid. Too bad, I was fully willing to bid a full $20. Honestly, I really can't see where Blockbuster is worth $290 million unless they have some huge underlying assets or real estate. Their business model is pretty much sunk and while they have name recognition, I'm not certain that it is a good thing in their case.