Detroit (Simply Pennies)
Shares of Blockbuster soared yesterday. The equity reached a high of $0.17 and ended the day at $0.145 up over 20%. The average volume traded is 2.67 million shares and yesterday, 13.10 million shares were traded.
The 52-week range is $0.04-$0.60. The penny stock is currently trading above its 50-day and at its 200-day moving average.
Blockbuster announced that it was in the process of selling itself and recent sources have stated that the company has entered into an agreement with “stalking horse” (starting bid or minimally accepted offer) bidder Cobalt Video Holdco for $290 million.
Blockbuster hopes to get more than $290 million as they plan to enter into an auction process.
The company stated
The auction process is designed to achieve the highest and best offer for the company’s assets and would be conducted under the Court’s supervision. Also, by initiating a sale process at this time, the company intends to accelerate its Chapter 11 proceedings and move forward. An auction will enable the company to invite competing bids from both strategic and financial investors and will also enable for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster’s future.
A final sale approval hearing is anticipated to occur no later than April 20th, 2011.
During this time,
Blockbuster said it expects that its U.S. operations, including a majority of its stores, DVD vending kiosks, by-mail and digital businesses, to continue to serve customers.
Simply Pennies will continue to follow this story as it develops. Be sure to watch our news at 8pm EST.