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Print 71 comment(s) - last by callmeroy.. on Apr 30 at 10:41 AM

Blockbuster may have been busted by Netflix

For many years Blockbuster video enjoyed great success in the movie rental business. Blockbuster is one of the largest movie rental chains in the country, but the company has found that its continued existence is far from guaranteed.

Blockbuster has announced that there is "substantial doubt" about its ability to continue as a going concern. A going concern is a qualification that refers to an auditor's assessment of a company's ability to continue operations reports MSNBC.

Blockbuster is struggling with profitability and viability in the face of the rising popularity of mail-order rental services like Netflix the company stated in a SEC disclosure. Blockbuster had previously disclosed that an auditor was likely to raise doubts about its long-term viability.

Blockbuster stated last week that its revolving and term loan agreement had been amended giving the company a $250 million revolving loan for financing maturing on September 30, 2010. The company thinks it will be able to close the financing around May 11, but states that the closing of the loan is not assured at this point.

Blockbuster says that even if the loan is funded it, "may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern."

Blockbuster shares fell 3 cents to 85 cents in trading after hours after closing at 88 cents reports MSNBC. In July of 2008 Blockbuster was considering the purchase of now defunct Circuit City.  



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RE: Simple Solution...
By Farva on 4/7/2009 5:33:48 PM , Rating: 1
Very true...I hope Comcast doesn't go down that dark road...I like my torrents. ;)


RE: Simple Solution...
By Boze on 4/7/2009 6:16:20 PM , Rating: 1
Comcast is already down that dark road. I got warned about 7 or 8 months back for downloading 461 GB in a single month. The tech said that "is way over normal home usage", to which I replied, "How do you define 'normal home usage' on a plan that is billeted as unlimited?"

The cap, by the way, after much pressing and speaking to several of his supervisors, is 250 gigabytes a month, download and upload combined.

The simple fact is... none of these companies should ever have said "unlimited" Internet in their plans. Once you tell the bodybuilder that the chicken breasts at the buffet are all you can eat, you're gonna piss him off when you decide that "all you can eat" means '3' and not '7'.


RE: Simple Solution...
By walk2k on 4/7/09, Rating: -1
RE: Simple Solution...
By Boze on 4/7/2009 6:54:40 PM , Rating: 4
Ironically, it was 100% legal.

It just so happens I was moving data between my online storage vault and a new computer I built... :)

OH, YOU LOOK LIKE A MORON NOW BECAUSE YOU ASSUMED, AND MADE AN ASS OUTTA YOURSELF. And me to a lesser degree, because now I have to let you know what an ass you are.

Now moving right along to the rest of your post...

I agree with you that 250 GB is very generous, and truth be told, according to Tomato, I haven't used more than 141 GB in a single month since the 461 GB month.

Fortunately, because cable is limited on speeds (6 mbps upstream / 15 mbps downstream is Comcast max in this area) and I live in a relatively small town (the lines are never... ever... saturated, you as a customer would never be impacted. I'm in the enviable position of having too big a pipe to realistically saturate to the point where it would affect another customer.

Also, how do you know what "unlimited" means unless its defined? They never said anything about no per-minute / per-hour / per-day / per-millenium charge. Unlimited can mean whatever I want it to mean, because it wasn't defined clearly at the start of the contract.

Had terms been clearly defined from the start, none of this mess would be occurring right now.


RE: Simple Solution...
By callmeroy on 4/8/09, Rating: -1
RE: Simple Solution...
By callmeroy on 4/8/2009 7:37:49 AM , Rating: 2
give anyone +1 point for the ability to read through the typos in that last post...sorry I'm off to a rough morning, didn't get much sleep and in earlier than normal today...


RE: Simple Solution...
By DFranch on 4/8/2009 12:50:14 PM , Rating: 2
I must have missed the typos, I understood everything which was said in the previous post. Unless you consider people disagreeing with you to be a typo. 461GB in a month is a lot of data, legitimate or not. I'll take my +1 now.


RE: Simple Solution...
By callmeroy on 4/30/2009 10:41:27 AM , Rating: 2
um ....no kidding 461 a month is a lot...which is EXACTLY what i said...I'm completely confused on my rating on this one...whatever...lol


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