Blockbuster, once a high flying video rental company, may be in its last days if it can’t complete a financing deal it is working on.
The death knell may be ringing for Blockbuster. Today the video-rental giant admitted that if it cannot complete the financing deals that it is currently working on, there is a good chance the company may be forced to shut its doors. While the company last week said it was in the process of getting a $250 million revolving loan from creditors, that may be in jeopardy.
Why? The loan apparently has some conditions to it, and Blockbuster is now not sure it can meet them. Even worse, whether the loan goes through are not, it is not even sure that would be enough to save the company.
Blockbuster is a great case study in how even dominating companies can get disrupted as described in clayton christensen’s innovators dilemma. I predict many giant media companies to face this fate in the coming few years.