Blockbuster CEO drops ball, value of Blockbuster’s stock
These days Blockbuster can’t seem to get out of it’s own way.
SAN FRANCISCO (Dow Jones) — Shares of Blockbuster Inc. declined more than 5% Monday after video-rental giant’s chief executive was quoted in a published report as saying the rental business is “in the tank.”
CEO John Antioco, interviewed for an article that appeared in The Wall Street Journal, said that while he doesn’t expect Dallas-based Blockbuster (BBI) to default on any payments due to Hollywood movie studios, those studios “have a legitimate reason to be concerned about the entire video business.”
The stock was down 27 cents at $4.49 in midday trading, after touching a 52-week low of $4.30.
For those of us who have been reading the writing on the walls for the past year, the slow demise of Blockbuster is no surprise, but remarks like this from the CEO of the company? I don’t remember reading that in “Best Business Practices.” Bad form. All sources seem to point toward Netflix as being the giant killer. Going back to our boxing analogy, I’d say at this point there’s about a minute left in round 3. Blockbuster is blind in one eye, and exhausted from all those haymakers that didn’t connect in rounds 1 and 2. Keep in mind that this is a championship bout and contestants cannot be saved by the bell.
An interesting bit of news: I actually rented a movie from Blockbuster the other day, and was, indeed, charged a $1.52 late fee, which I felt was a bit suspicious. Then, I read this Fox News article (shrugs): Blockbuster may be re-instating the late fees that they never really got rid of so they don’t have to pay late fees to their creditors (thanks fark). I’m feeling pretty bad for anyone who owns Blockbuster stock/works for Blockbuster/hates Netflix about now, because times they are a-changin.
Bottom line: Blockbuster sucks. Blockbuster’s CEO sucks. Blockbuster’s stock is worse than worthless. The company is a freight train of shit with no brakes on, and it’s on a one way track to Bankrupville Ohio.
You heard it here first folks!