Well Ladies and Gentlemen, it appears that our big blue friend Blockbuster has finally decided to declare bankruptcy. In a recent development, Blockbuster CEO Jim Keyes announced the company will be filing Chapter 11 bankruptcy in September as it hopes to restructure it’s massive debt load ($990 million) while closing another 800 stores country-wide. Blockbuster has made all movie studios aware of it’s decision and now it’s going to be a wait and see game to find out if Blockbuster can survive.
For those old enough to remember, Blockbuster was sold to Viacom in 1994 for $8.1 billion. Today, it’s estimated that Blockbuster’s market value is about $16 million, making the 16-year old one of the worst ever. Depending on the support Blockbuster receives from the studios, you might find them stronger than ever in just a few years. Conversely, should the movie studios decide to favor Netflix and RedBox, every single Blockbuster you’ve ever known could be liquidated and shut down.
And if you own any Blockbuster stock? Well your stock certificate is going to be for decoration now as BLOKA is trading on the pink sheets at seven cents a share and plummeting. Blockbuster hasn’t officially filed for bankruptcy yet but barring a miracle, that stock price will be non-existent in a few weeks. Sadly, I’ve been a solid supporter of Blockbuster and was hoping they could come out of this without filing for chapter 11. I’ll still continue my Blockbuster by Mail subscription simply because most movies are available 28 days sooner but we’ll see just how long that continues.
On to the best money articles from the past week!
How To Set Up Your Finances for College @ PT Money: I remember my first year in college. My parents gave me $1,500 to use for the year (my room and meals were prepaid for) and I thought I would live like a king. That was until the second month when I ran out of money and needed a job!
Are You Richer Than Your Kids or Poorer Than Your Grandchildren? @ Monevator: Interest question for the grandparents of the world. I guess the right answer is richer than your grandchildren but poorer than your kids but perhaps that doesn’t sit well with everyone.
How To Fix 7 Common Budget Mistakes @ US News: Budgeting is a boring but extremely necessary task in everyone’s financial life and just like a diet, it can be difficult to do consistently. Great article on seven common mistakes you might make.
Video on How To Spot Counterfeits @ Wise Bread: Another new $100 is about to be in circulation and there’s a cool video on how you can spot the fake ones. Will money ever become counterfeit-proof?
Would You Rather Be Richer, Thinner, Smarter or Younger? @ The Consumerist: A super interesting question that different people would answer differently. Each answer can help you with another, except asking for youth. If this were presented to me, I’d probably take younger. (Even though I’m still in my 20′s)
How Much is a College Degree Worth? @ Cash Money Life: Neat image to show you just how valuable a college degree can be, at least from a financial standpoint.
The First and Last Times Money is Mentioned in the Bible @ Free Money Finance: The best selling book in the world has a lot to do with, well everything and money is no different. Neat post about how money is mentioned in the Bible and where you can find it.
Published or updated October 28, 2012.