Blockbuster Inc , , which filed for bankruptcy last year, said it has started the process to sell itself and has entered into a "stalking horse" asset purchase deal with investor group Cobalt Video Holdco for $290 million. Cobalt is a limited liability company formed by funds managed by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Värde Partners Inc. A "stalking horse" bid is used when a bankrupt company chooses an interested firm to set the bar so that other bidders can't low-ball a purchase price.
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