Moody's may downgrade Blockbuster (BBI)

| About: Blockbuster Inc. (BBI)
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Moody's may downgrade Blockbuster's (BBI) debt rating because of its proposed acquisition of Hollywood Entertainment (HLYW). Read about it. 

Here is some relevant financial data on BBI:

  • Free Cash Flow for the first 9 months of 2004 was about $40 million
  • As of 10/31/04, BBI had $191 million in cash and $1.1 billion in debt
  • BBI expects to spend $120 million in 2005 on new initiatives, such as Blockbuster Online
  • BBI has launched a hostile bid valued at $1 billion for HLYW (and that price may go up as the bidding war continues)