March 30, 2010
Things are going from bad to worse for Blockbuster. Store closings, bleak financial statements, and now the company could potentially be dropped from the New York Stock Exchange. According to Forbes today, Blockbuster has fallen below the market cap the NYSE requires for companies to stay listed.
At this point, Blockbuster has 45 days to submit a plan to the NYSE for how it will raise its market cap over $75 million within the next 18 months. In two months, the company's shareholders will vote on a reverse stock split, which will reduce the number of shares available in the market but increase their individual value. Blockbuster's stock is currently trading at $0.25 per share, and a reverse stock split to drive up the price could potentially lure investors in.