Is BBI the next SIRI?

OK I might be changing my outlook a bit with respect to the Kiosk revenue stream.

I spoke with someone who is pretty reliable and knowledgeable with respect to these particular logistics. Apparently the rev split on the NCR kiosk platform looks like this:

Any movies 6 months are older, the split is 50:50
Any new movies are supplied by NCR and blockbuster gets royalty up to 10%

There are also other considerations in terms of how much bottom line gross revs the kiosks generate.

This is very important because look at this way, if blockbuster did not put a kiosk at store X, most likely Rebox will at some point. So not only is blockbuster gaining revs they never would have had, they are also taking away these revs from Redbox.

They are on pace to have 10K kiosks running by years end and the backlog demand is insatiable right now to get these up and running.

In the next couple years if they could have 25K running domestically and have something tangible on the Euro front, it has some major potential.
 
NEWS Update:


--------------------------------------------------------------------------------
New York Stock Exchange Accepts Blockbuster's Plan to Regain Compliance With Minimum Market Capitalization Requirement


Press Release Source: Blockbuster Inc. On Tuesday June 22, 2010, 11:00 am

DALLAS, June 22 /PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE: BBI, BBI.B), a leading provider of media entertainment, today announced that the New York Stock Exchange ("NYSE") has accepted the Company's plan to regain compliance with the NYSE's minimum average market capitalization requirement. As a result, Blockbuster's common stock will continue to be listed on the NYSE, subject to quarterly reviews by the Exchange to monitor the Company's progress against the confidential plan and subject to the Company's compliance with the other NYSE continued listing requirements.

On March 24, 2010, the NYSE notified Blockbuster that it had fallen below the NYSE's continued listing standard requiring that it maintain an average market capitalization of at least $75 million over a consecutive 30 trading-day period. With the acceptance of the confidential plan, Blockbuster has until September 2011 to comply with the average market capitalization standard.

Separately, on November 17, 2009, the NYSE notified the Company that it was not in compliance with the NYSE's continued listing standard that requires the average closing price of the Company's common stock be no less than $1.00 per share over a consecutive 30 trading-day period. As the Company previously disclosed, the Company has put forth a proposal to convert its outstanding Class B common stock into Class A common stock and rename the Class A common stock as "common stock," as well as a proposal to effect a reverse stock split of the Company's common stock, at its June 24, 2010 annual stockholders' meeting. The Company currently intends to effect the conversion of the Class B common stock if approved by stockholders at the annual meeting, and to effect the reverse stock split if the recapitalization efforts the Company is currently pursuing do not result in the price of the Company's common stock increasing such that the Company regains compliance with the NYSE's minimum price requirement.
 
Blockbuster sucks! There is an entire world out there hoping they will bite the dust. That's a big hill to climb. The made their bed, now, if there is any justice, they will lie in it.
 
why should anyone rent movies when all sorts of free movies are available on the internet for free............even the new one!

:D
 
Quote from PolymathMind:

Warning to everyone:

trading was halted today until further news.

Delta, I really hope they don't file an 11 you were holding a big stake.
More...

Thanks. A spokeswoman for the company does not why its a halt. Strange because its supposedly a T1 halt, which = pending material news.

I read the 8K late last night that just came out yesterday evening but apparently no one did until after the market opened this AM.

Whats happening is they completely contradicted the previous PR from the meeting last week. APparently, according the 8K, the R/S was NOT approved and the conversion share class of A/B was NOT approved.

THey definitely have the money to make the payment today. So we shall see shortly.......................
 
Blockbuster Says Proposals Fail, Stock Halted >BBIFont size: A | A | A11:30 AM ET 7/1/10 | Dow Jones

DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Blockbuster Inc. (BBI) suffered another setback after it announced that two company proposals it previously said had passed at its annual meeting actually weren't approved.

Blockbuster had proposed performing a reverse split on its stock to raise the trading price and help to regain compliance with the New York Stock Exchange's listing standards. It also hoped to combine its Class A stock and Class B stock into one class, a move aimed at lessening confusion and providing liquidity for the more-thinly traded B shares.

Last week, the company said preliminary voting results showed that shareholders "overwhelmingly approved" combining the two classes into a single common stock and "approved" the option for a reverse stock split.

However, in a filing with the Securities and Exchange Commission late Wednesday, Blockbuster said neither proposal received a majority of the votes of both classes of shares, voting as a single class.

A Blockbuster spokeswoman said the reversal in outcome was due to outstanding votes that had yet to be counted and which weren't included in the preliminary calculations. She couldn't immediately provide more detail.

The spokeswoman declined immediate comment on whether Blockbuster would make a $43 million principal and interest payment on its 11.75% debt due in October 2014 that is due Thursday. Those bonds, with outstanding principal of roughly $630 million, last traded Wednesday afternoon at 64 cents on the dollar, according to MarketAxess. The spokeswoman noted that it is only Thursday morning and Blockbuster in the past has confirmed making various debt payments on the days they were due.

Blockbuster is struggling to recapitalize itself and make a deal with owners of its more than $900 million in debt, a crushing burden it will be unable to manage without restructuring. The spokeswoman couldn't provide an update on restructuring talks but Blockbuster said as recently as last week that it was making progress.

Moments after Dow Jones Newswires confirmed the A and B share combination and reverse split failures, trading in both classes of Blockbuster shares was halted on the NYSE. A person familiar with the process said the shares were halted, pending news about the shareholder vote, and didn't relate to a move by the exchange to delist Blockbuster.

Blockbuster A shares were trading at 23 cents, down 1 cent, or 3.4%, and the B shares were at 19 cents, off 24%, or 6 cents, when they were halted.

The Blockbuster spokeswoman said she didn't know why the shares were halted. She also declined immediate comment on the future of Chairman and Chief Executive Jim Keyes, whose employment agreement with Blockbuster runs through Thursday.

-By Maxwell Murphy, Dow Jones Newswiresmaxwell.murphy@dowjones.com
 
more news came out. seems that the nyse halted it for now. jim keyes contract expires in 3 weeks. I'm sorry to say this, but I think they're treading of water is about to die out.
 
DeltaSpread,

I'm new to this site and came upon this thread about Blockbuster. I was someone who took advantage of the Sirius situation and am now looking for another distress play. I've been researching BB for the past few months and even attended the recent annual meeting in Dallas (which was a joke). I like your posts here and its obvious you know a lot about this company. I recently began buying up the 2012 bonds at about 10 and I'm curious to know what your stance on the bonds are now? Like yourself I am optimistic on the future direction of the company and the business model. However, we first need to get through this cash problem. I like the 2012 bonds risk/reward situation. Also, do you have a contact for the 2012 committee negotiating with the company? Thanks.
 
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