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Jul042010

MGM needs money, and so does Blockbuster video

How do you tell someone it's time to move on? Blockbuster video and MGM Studios need that talk. The once mighty video rental store is in debt $42.4 million and has been officially delisted from the New York Stock Exchange because it's stock price has been under $1 for far longer than normally accepted. MGM, well it's attempting to obtain a sixth extension on its billions in debt. It's time to let go, ladies.

Blockbuster has had years to adapt to a changing market and has not; Netflix has. Between mail in rentals and the blooming online download/streaming market, Blockbuster has not kept up. Between Hulu's new online TV subscription and Netflix, the world is moving online and Blockbuster is too late. Time to give up guys.

MGM is still trying to get another extension on its many debts, Variety reports. The drama at MGM has delayed Bond 23 and the upcoming 2-part Hobbit movie, rumored to be directed by Peter Jackson. For months, the studio has been looking for bidders to buy it at a targetted price of $2 billion. Access Industries, Lionsgate, and Time Warner have bid between $1.3 and $1.5 billion. At this point, I'd take the best offer, but MGM executives are holding out.

Next we'll be hearing that these companies want a government bailout. Seriously, businesses fail when they don't keep up with the ever-changing world. MGM and Blockbuster, you've failed.

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