SK Telecom mulls investment in Blockbuster
Leading South Korean mobile operator SK Telecom is considering investing in Blockbuster, the bankrupt US video rental chain. An official from SK Telecom confirmed the operator’s interest to Reuters while also mentioning that it is “looking at many opportunities overseas”. Other reports say the operator is interested in a full takeover of Blockbuster.
Reports describe the investment as a chance for SK Telecom to strengthen its content ownership but analysts expressed scepticism at the logic of any deal, not least because of Blockbuster’s difficult financial situation. In February, a US federal bankruptcy court approved the video chain’s sale to a group of creditors for US$290 million as a way to kickstart an auction process that could trigger a higher bid. In addition to its 2,500 highstreet outlets, Blockbuster also owns a digital distribution business, which could be a potential attraction to the South Korean operator.