Lionsgate withdraws legal objection to Dish’s Blockbuster acquisition

A legal document filed by Lionsgate Films last week asked a court to consider the fact that Dish’s early April acquisition of Blockbuster might not cover the pay-TV giant from making good on its latest buy-out’s previous dealings.

The company recently had a change of heart and rescinded its previous request, though it’s unclear exactly why.

Lionsgate withdraws legal objection to Dish's Blockbuster acquisition

Home Media Magazine confirmed that lawyers representing the studio asked the Bankruptcy Court in New York on Monday to disregard the original April 28th appeal, essentially closing the case.

Lionsgate was concerned that Dish’s purchase of Blockbuster would result in the movie studio losing out on revenue from previously signed contracts, specifically in regard to the delivery of titles such as “The Expendables” and “The Last Exorcism.”

Neither Dish nor Blockbuster has issued a statement regarding the decision. UPI spoke to a Lionsgate representative over the weekend who said, “We look forward to continuing a productive, long-term business relationship with Dish and their Blockbuster affiliate in the future.”

Dish CEO Charlie Ergen appointed Michael Kelly, a Dish executive, as president of Blockbuster on Monday — the same day the company announced a half-billion dollar settlement with TiVo. In a subsequent earnings call, the pair also ostensibly squashed any hopes that the team-up of Dish and Blockbuster would lead to the creation of a Netflix rival.