UPDATE: Blockbuster Video Lives to Rewind Another Day

Image by Chris Devers via FlickrBlockbuster, Inc, the Dallas-based video rental chain, narrowly dodged immediate liquidation last week, and instead, will be sold at auction, according to reports by Bloomberg News and legal Web site Am Law Daily.

Blockbuster sought Chapter 11 bankruptcy protection last September in federal bankruptcy court in New York (see "TUOL" post 9/23/10). Judge Burton Lifland accepted the public auction deal presented by lenders, including Monarch Alternative Capital LP. Judge Lifland also ruled that corporate marauder Carl Icahn may submit a bid for Blockbuster at the auction.

No date for the auction of the company founded in 1985 has been announced. "TUOL" wonders if there will be a penalty if the auction last more than 2 or 3 days. 

Media Group Seeks 'Freedom' from Newspaper & TV Ownership

Image via WikipediaLos Angeles Times media writer James Rainey reports today that Irvine, Calif.-based Freedom Communications, which counts 33 dailies, 70 weeklies and eight tv stations among its holdings, is putting its properties up for auction.

The Orange County Register, Freedom's Flagship daily, reportedly is drawing interest from the Tribune Co., owner of The Los Angeles Times and Chicago Tribune, and Denver-based MediaNews, which includes the Torrance Daily Breeze, San Bernardino Sun and the Long-Beach Press Telegram among its nine California properties, according to Rainey.

Bids are expected sometime next month.  Freedom Communications emerged from a 2009 Chapter 11 bankruptcy in April of last year (see "TUOL" post 11/19/10).