Dish wins Blockbuster Auction ($320 million) from Carl Icahn

Dish Network Corp. won an auction for bankrupt Blockbuster Inc.’s movie-rental business with a $320 million bid that beat offers from Carl Icahn and other investors., a move that could see to strengthen the second largest U.S. satellite-TV providers tapping the movie rental chain for online content to their offerings.

Dish, led by Charlie Ergen trumped, at least three other bidders, including Carl Icahn.

Dish could find Blockbuster's online content appealing because the company could use it as a basis for an online product to deliver movies.

The deal marks the second purchase. Last month, Dish now has a nod from a bankruptcy court to DBSD North America for about $ 1,400,000,000.

Ergen struck his first deal of the year in February, digital set-top box maker EchoStar Corp., where he is the Chairman agreed to buy Hughes Communications, for $ 1330000000th

Dish Network said it expects about U.S.$ 228 million in cash to acquire Blockbuster pay.

"Blockbuster will complement our existing services during the video presentation of cross-marketing and service expansion opportunities for Dish Network" said Tom Cullen, Dish Network.

Blockbuster had a market capitalization of more than $ 5,000,000,000 was at its peak in 2002, but under the pressure of delivery and digital rivals such as Netflix Inc. The company filed bankruptcy in September and put itself up for sale in February.

A bid of $ 308,100,000 Cobalt Video, Monarch Alternative Capital LP, was the highest bid before the auction to a prosecutor is not open to the press was moved.

Icahn had bid $ 310,600,000, but his offer less money taken as a monarch was thus considered a lower bid.