Dish Network spending spree part of plan to revamp its business

It seems like an odd strategy for a company in a mature business with limited growth to buy another with even dimmer prospects. But that's what satellite broadcaster Dish Network Corp. did in April when it acquired bankrupt video store chain Blockbuster in a deal valued at $320 million.

Purchasing Blockbuster, and embarking on an almost $3-billion spending spree for broadband spectrum, are part of Dish's ambitious plans to turn the company from a pay-television service with about 14 million subscribers into a competitor of Netflix Inc. and a player in wireless communications. "We are putting together the building blocks to be able to provide a whole suite of services to the customer," Dish President and Chief Executive Joe Clayton said. "Wireless voice, broadband, video, mobile … we're going to have the capability to do all of the above."