Was Blockbuster's Demise Coordinated? Shares Spike 1581%

This past Friday the shares of Blockbuster BLIBQ increased by 1581%. What if there is a resurrection in place for the seemingly dead company known as Blockbuster? What if this company could be Blockbuster 2.0 and compete with the best of the best, like Netflix?

New York, NY -- (SBWire) -- 05/06/2014 --Blockbuster is a huge brand and was a widely popular product back in the day. It had huge successes. Not to mention it was a lot of fun to go into the store and pick out a movie to watch at home. Many people have a lot of fond memories of going to the Blockbuster store. Blockbuster is a friendly name that people still recognize today and trust.

Well, here are the facts about things Blockbuster LLC that we know. Starting off, Blockbuster was sold to Dish in a very sketchy manner. It is known that many of the shareholders lost on that deal, because it was sold through an auction at prices well below market price. In this deal, Dish currently offers a service called Blockbuster at home to its subscribers and Blockbuster On Demand. However it is only available to US citizens. There is huge room for growth and development within this market. This is a huge opportunity for Blockbuster, it seems like it would be very difficult for the company to pass up an opportunity like this.

Blockbuster however, despite being dead might be re-launched within the next year. Right now, there are some rich billionaires involved like Carl Icahn, Charlie Ergen, and Phillip Falcone. In addition, JP Morgan and other private equity firms are also involved. With that in mind here is the punch line, current LONG shareholders of the old Blockbuster believe that their shell of a dead company can be recapitalized with Dish’s help; creating what would be known as Blockbuster 2.0 or BLUE CLOUD. So with the launch of Blockbuster 2.0, is Blockbuster making a comeback? There is plenty of evidence to support this theory.

Perhaps the most compelling information or sign that Blockbuster 2.0 might re-launch is the activity on the Yahoo message board for BLIAQ. It might be outlandish to think but with this information, it is hard to think that Blockbuster is really dying, going out of business, and in bankruptcy with its shares being cancelled. However, if this is the case would this have already happened? Would Blockbuster not already be out of business by now?

Right now, the old Blockbuster trades as BB Liquidating. It is interesting that they choose that name, is it not? The reason for this is that Blockbuster set up things before they filed for bankruptcy. As you might know in bankruptcy, all your creditors come out of the wood works and start demanding asset sales to make sure they are paid. Blockbuster might have known their time was coming, so to say. So, they setup their remote bankruptcy trusts to protect their assets from their creditors. With this information perhaps, the demise of Blockbuster was coordinated.

There very well may be Blockbuster IP with licensing agreements and trademarks in this remote trust. The media has spun it to make it seem like Dish owns these things but that may not be true. So what if Dish recapitalizes the BLIAQ Shell? This leads to a few ideas:

Dish might recapitalize on BLIAQ and then Blockbuster becomes an online video streaming wireless broadband company.

Dish then recapitalizes the shell to monetizes all the spectrum holdings to assist in launching Blockbuster again.

Dish recapitalize BLIAQ with the all the spectrum and then sells its or pulls off an IPO.

With this information perhaps the demise of Blockbuster was, is, and will be Netflix’s biggest worry. Perhaps the demise of Blockbuster was coordinated so that it could become Blockbuster 2.0 and rule the market on its own. This might be truly the worst thing for Netflix. Is this possible? Perhaps the market is hungry for Blockbuster to revive itself.

Not only that, Blockbuster still has a Yahoo message board for the last three years that is SUPER active. Why would people on these message boards still be talking and arguing about a company that is currently in Chapter 7 and waiting for their shares to be cancelled? What if this company is coming back to life? Why in the world would someone waste his or her time posting on a board if there was no future for Blockbuster? Why would the company maintain such a thing? In addition, why would there be activity on a stock that should have been cancelled years ago?

Just food for thought, to fuel your Blockbuster interest.

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