Blockbuster Inc. Shares Hit 69 Cents, Now What? (NCR, BBI)

Last month Blockbuster (NYSE: BBI) posted a Q3 net loss of $116.8 million and worse was the company sales numbers down a staggering 21%.
However, Blockbuster still managed to rake in $910.5 million in sales, down from $1.15 billion a year earlier but for now the ol' King of the VHS is still in the game thanks to NCR (NYSE:NCR).

Last week NCR (NYSE: NCR) and Blockbuster's (NYSE: BBI) partner in the burgeoning market of automated DVD rental kiosks, announced on this past Thursday that it has acquired DVDPlay, the operator of a network of 1,300 kiosks in the U.S. and Canada.

Financial terms of the transaction were not disclosed.

With the acquisition of Campbell, Calif.-based DVDPlay's assets, Georgia-based NCR said it now expects to have 3,800 Blockbuster-branded rental kiosks in operation by year's end.

The deal will also provide Blockbuster with new kiosks in California, Colorado and Illinois.

Meanwhile, Coinstar (NASD: CSTR), Blockbuster's main rival in the automated DVD rental kiosk market through its Redbox unit, announced on Thursday that it has now installed more than 22,210 kiosks, averaging 900 new installations per month over the past six months.

Time will tell if Blockbuster (BBI) can withstand the changes of the DVD market and video downloads, but for under 60 cents a share it may be worth a few bucks to gamble.

BBI 101

SOURCE: http://www.dmwmedia.com/news/2009/12/10/ncr-acquires-dvdplay-expand-blockbuster-rental-kiosks

Disclaimer: No positions in any of the securities mentioned in this publication.