Blockbuster raises Hollywood bid
Improves on Movie Gallery's offer by 9%
By Carl DiOrio -- Video Business, 2/2/2005
FEB. 2 | Blockbuster has muddied up plans for a Movie Gallery-Hollywood Entertainment merger.
The No. 1 video rentailer today filed a dramatically improved bid for Hollywood that beats Gallery's offer for the chain by 9%.
Blockbuster's new cash and stock bid of $14.50 per share compares with a $13.25 per share from Gallery, which Hollywood's board has accepted. It had been widely expected that Blockbuster, which earlier filed an $11.50 offer for Hollywood, would sweeten its offer.
Blockbuster now has offered $11.50 in cash and $3 in Blockbuster class A common stock for each outstanding share of Hollywood, parent company to the Hollywood Video chain. The proposed transaction would have an estimated total value of more than $1.3 billion, with Blockbuster stating such an acquisition would be immediately accretive to its earnings and cash flow.
"We believe this transaction will provide tremendous value to both Blockbuster and Hollywood shareholders and should better position Blockbuster to compete in the rapidly changing home entertainment marketplace," Blockbuster chairman-CEO John Antioco said. "Additionally, by combining the companies' store distribution and brand portfolios, we plan to serve more customers in more ways than ever before."
Blockbuster has been cooperating with the Federal Trade Commission, which will rule on whether any antitrust concerns would be raised by Blockbuster's acquiring Hollywood.
Talkback
Related Content
Related Content
Sponsored Links
