Tough day for Blockbuster Inc. (BBI) with shares falling 13% and continuing to drop after hours. BBI reported Q1 today and their loss widened because of "a soft market for movie rentals and heavy spending on its online rental program". Looks like Netflix (NFLX) wins this round.
Consider Icahn Management holds 9,187,280 shares of BBI when earlier this morning that was worth $54,021,206.40. Just a few hours later you’ve got $49,611,312.00 in your pocket putting your one day loss at $4,409,894.40.
But Carl Icahn picked up 18,882,411 shares back on Jan 3rd, 2007, now it gets fun: 
Better luck tomorrow Carl, $13.4 million is just pocket change, but still, you think you lost on BBI today, someone did even worse.
Feel better yet?
There was some good news on the call today:
Revenue was up 5% to $1.47 billion. That beat the Street forecast of $1.37 billion and last year’s first quarter, which had sales of $1.4 billion.
Blockbuster said Total Access, its online service, grew to 2.8 million paying subscribers, up 800,000 during the quarter.
Blockbuster plans to replace about 200 stores this year with smaller versions, which will save them money.
As for Carl, I’m sure he’ll be just fine.
Frank Lara Jr.
Frank Lara Jr. can be reached at [email protected]; he does not own securities in the companies he covers.
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