Blockbuster struggles to stay in business

Blockbuster, the biggest home video store chain in America, suffered a loss of 491.4 million dollars (2.67$ a share) in the third quarter of this year.

Therefore, Blockbuster started on Tuesday a program to raise funds and cut costs, in order to avoid the situation of not being able to pay back the lawns, a situation that would lead to bankruptcy.

To do this, preferred stock of over 100 million dollars are going to be placed for sale starting November 15, for the price of 1000$ a share. They will register a dividend of 7.5% a year. This type of preferred stocks can be changed into more than 194 common shares.

The Executive of Blockbuster, Carl Icahn, and his associates agreed to buy shares of 38 million dollars. Carl Icahn apparently won three executives chairs this year, for him and for two other executives that he has named.
The new executive says he will try to take over the board next year, when the rest of the positions will be put to vote. Having a majority in the board might lead to the stability and cooperation that is needed to help the company overcome the crisis situation.

Amy Glynn- analyst for Standard & Poor's - notes in a report that Blockbuster is the first in the industry and that it heads in the right direction, but they are still pressured by the dead lines.