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Blockbuster Hopes To Dodge Bankruptcy Thanks To Deal With Studios

Blockbuster's money troubles are nothing new, but Old Blue hasn't thrown in the towel just yet. According to the Hollywood Reporter, Blockbuster has struck a deal with Warner Bros., Sony, and Fox that may help the rental company avoid bankruptcy. The deal will allow Blockbuster to receive new DVD releases right away, and also grants them some favorable payment terms. In exchange, those studios got a lien on Blockbuster's Canadian assets.

That early jump on the rental market could prove crucial, since Netflix and Redbox both have to wait 28 days before receiving some new releases. Whether it will be enough to turn the financial tide in Blockbuster's favor remains to be seen, but investors are obviously optimistic; the company's shares jumped 20% yesterday.