Analyst Calls Blockbuster (NYSE:BBI) – “Dead Man Walking”
February 24, 2010 12:25 PM
Analysts are mulling over Blockbuster’s restructuring, announced yesterday. Ironically, Blockbuster's own story might not have a happy ending.
Competitors Netflix (NASDQ:NFLX) and Redbox are steadily eroding the company’s market share, while services like Hulu and On Demand make a trip to the video store unnecessary. Analysts say Blockbuster needs a revenue stream to offset failing brick-and-mortar operations, which they’re unlikely to get.
Needham & Co. analyst Charles Wolf is skeptical. “If they can't build a profitable stores operation, then there is no Blockbuster. It's real simple," Mr. Wolf said. If traffic doesn't pick up by mid-year, "we may just kiss this whole story good-bye. We got a dead-man-walking situation here."
steve schuster
