Grupo Elektra Acquires Blockbuster Mexico

MEXICO CITY: Grupo Elektra, a company controlled by Ricardo Salinas, has purchased Blockbuster Mexico, a wholly owned subsidiary of satellite pay-TV provider DISH Network, for 408 million pesos ($30.8 million).

The company said it has retained the current CEO of Blockbuster Mexico, Edward J. Argüelles, and most of its 2,600 employees. Grupo Elektra also acquired the rights to the Blockbuster brand in Mexico for two years.

The acquisition will allow Grupo Elektra to move to more upscale neighborhoods, being that a large portion of Blockbuster’s 320 stores are in the B and C socio-demographic areas. The company also said it will add financial services under its Banco Azteca brand, and it will expand the line of electronics currently available in stores.

“This acquisition of Blockbuster Mexico is a step toward the creation of high-quality services accessible to Mexican consumers who are increasingly more demanding,” said Luis Niño de Rivera, the CEO of Banco Azteca. “This transaction will provide a wide range of cutting-edge products and entertainment systems.”

Blockbuster has branches in 108 cities in Mexico, with a concentration in the metropolitan area of Mexico City and Monterrey. The stores will add about 7 percent to Grupo Elektra’s sales, which currently operates 6,460 outlets in eight countries across Latin America and the United States.

Blockbuster Mexico currently has 1.6 million registered users. Grupo Salinas expects to migrate a portion of Blockbuster consumers to some of their existing digital platforms and strengthen their entertainment offering.