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Blockbuster To Be Delisted from NYSE

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More bad news for Blockbuster (s BBI): the DVD rental firm announced yesterday that it will lose its place on the New York Stock Exchange next Wednesday, after it failed to get enough shareholder votes on proposals designed to help it comply with NYSE requirements.

The suspension and delisting of Blockbuster shares comes after a failed attempt to get shareholders to agree to a reverse stock split and a combination of its Class A and Class B shares to comply with NYSE requirements. Those actions came before stockholders at its annual meeting last week, but the company failed to get a majority of shareholders to vote in favor the proposals, in part due to low voter turnout. According to Blockbuster, 49 percent of shares voted in favor of combining the stock classes and only 43 percent were cast in favor of the reverse stock split. That put Blockbuster afoul of NYSE requirements, which call for listed companies to have a share price of above $1 and a market cap of above $75 million.

The only good news that the company announced was that its debt-holders agreed to give the company a six week-extension to make good on a $42.4 million interest and principal payment against $630 million in senior secured debt that would have required Blockbuster to hand over virtually all its cash on hand. The reprieve lasts through August 13, 2010.

Blockbuster has been frantically trying to stay alive, shuttering stores and trying to conserve cash while competitors like Netflix (s NFLX) and Redbox (s CSTR) continue to steal market share. But despite deals with studios like Warner Bros. (s TWX), Sony Pictures (s SNE) and 20th Century Fox (s NWS) that give it a 28-day advantage over Netflix and Redbox on renting new release titles to its customers, the company has warned that bankruptcy is a possibility if it can’t turn around its business — and quickly.

Related content on GigaOM Pro: Slow and Steady, Netflix Pulls Ahead in Streaming Video (subscription required)

13 Responses to “Blockbuster To Be Delisted from NYSE”

  1. Nomo Blockbuster

    UPDATE: Blockbuster is now for sale having failed in bankruptcy proceedings. The company is asking for $300 million, but is only worth 10% of that in market capitalization, at best. Summit Distribution LLC (makers of the ‘Twilight’ movies) and many others want the company liquidated and, with the way things are going, that’s exactly what is going to happen.

  2. Nomo Blockbuster

    Blockbuster staying alive? Blockbuster is already dead! The delisting is the ultimate beginning of the end for the company and anyone that attempts to save Blockbuster at this point has their head in the wrong place.

    Chairman/CEO Jim Keyes, who was reelected solely because no one else wants to bear the burden, refuses to say the truth, in plain English, that Blockbuster cannot win and will close forever shortly. Don’t even go to Chapter 11, stop at Chapter 7. Mr. Keyes, having worked for 7-Eleven, ought to conclude that 7 comes first.

  3. Nomo Blockbuster

    Blockbuster staying alive? Blockbuster is already dead! The delisting is the ultimate beginning of the end for the company and anyone that attempts to save Blockbuster at this point has their head in the wrong place.

    Mr. Keyes, who was reelected solely because no one else wants to bear the burden, refuses to say the truth, in plain English, that Blockbuster cannot win and will close forever shortly. Don’t even go to Chapter 11, stop at Chapter 7. Mr. Keyes, having worked for 7-Eleven, ought to conclude that 7 comes first.

  4. Olmedo

    What are the odds of corporate blockbuster instead of blaming netflix and redbox coming up with some ideas on the same ground, like getting rid if their insane late fees, giving netflix user 5+ months free rentals plus one more dvd, idk their shares are .26
    It would be perfect time to invest, if their oltime thinking ppl could get their heads out of their buts