Blockbuster searches for new blood
The movie-rental chain reportedly wants new blood as it emerges from bankruptcy.
Better late than never, I suppose. Too late? Perhaps. But Blockbuster is going to try.
Blockbuster is looking for a new boss and could boot Jim Keyes by the end of the year, the Journal reports. Keyes has been in charge since 2007 -- right about the time Blockbuster should have been about to annihilate upstart rival Netflix (NFLX).
That didn't turn out so well. Blockbuster is now in bankruptcy, crushed under nearly $1 billion in debt, and Netflix is practically everywhere -- its share price above $150. Post continues after video:
People in the know tell the Journal that Keyes is still a candidate to remain in the CEO spot, but that would be a terrible move for the board. Blockbuster desperately needs new leadership as it emerges from bankruptcy and begins a new life. The company should search among the ranks of Amazon (AMZN), Google (GOOG) and even Comcast (CMCSA) if it truly wants to go digital.
Keyes has an ally in Carl Icahn, the billionaire investor that bought about a third of Blockbuster's $630 million in senior bonds before the company went bankrupt, the Journal reports. The two men are close.
Will Icahn stick with Keyes as he helps remake the company? Icahn and other senior bondholders must approve any new CEO, and it sounds like Blockbuster's future is very much in his hands.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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