• by Wayne Friedman , April 6, 2011

Predicted by some analysts, Dish Network is the winning bidder of Blockbuster Inc. assets -- valued at $320 million. 

However, Dish Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing, which is expected to occur in the second quarter of 2011.

Dish hopes to use the Blockbuster stores to foster on-the-ground cross-marketing of its satellite programming services and other related video.

Tom Cullen, executive vice president of sales, marketing and programming for Dish Network, stated: "Blockbuster will complement our existing video offerings, while presenting cross-marketing and service extension opportunities for Dish Network."

Blockbuster has more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery. Cullen acknowledged the challenges ahead, but said he aimed to "re-establish Blockbuster's brand as a leader in video entertainment."

In an earlier attempt to get Blockbuster, Dish outbid Carl Icahn's group, which offered $310.6 million, while Dish bid $307.1 million. Also, Seoul-based SK Telecom made an earlier cash bid of $284.5 million, which it said was superior to the others, as it takes on more liabilities for movie studios and additional costs.

Dish Network has some 14.1 million satellite customers.