Blockbuster Moves Forward with Filing for Bankruptcy and Netflix Shares Rise

This week, Reuters reported that shares in Netflix reached an all-time high.  Many speculate that the rise in shares was attributed to the fact that the company's major competitor, Blockbuster, filed for bankruptcy protection last week.  However, others say that it is too soon to call it "the end" for the video store giant.

Shares of Netflix hit a record high of $163.72 because people think that the company will take over Blockbuster's share of the market after the organization closes the doors to its stores.  Netflix currently has 36% of the rental market compared to Blockbuster's 22%.

Simon Swart, executive vice president and general manager of News Corp's Twentieth Century Fox Home Entertainment said, "We are confident that Blockbuster will emerge from its reorganization financially healthier and able to innovate to serve the entertainment needs of its huge customer base."

More details regarding Blockbuster's bankruptcy filing are expected to emerge over the course of the next several weeks.

Planning to file for bankruptcy in Utah?  Contact the Stone Law Firm to get immediate guidance from aSalt Lake City bankruptcy attorney.