Blockbuster searches for new blood

The movie-rental chain reportedly wants new blood as it emerges from bankruptcy.

By Kim Peterson Oct 12, 2010 4:14PM
Credit: Ron Heflin/AP
Caption: Blockbuster storeBlockbuster (BBI) has discovered this thing called the Internet, and thinks it's time to give it a shot. The company is looking for a new chief executive that can "steer the company into digital businesses," The Wall Street Journal reports.

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.
More from MSN Top Stocks:
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
280
280 rated 2
473
473 rated 3
639
639 rated 4
637
637 rated 5
662
662 rated 6
640
640 rated 7
498
498 rated 8
287
287 rated 9
121
121 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.