New York - Video rental giant Blockbuster is in advanced negotiations to acquire film download site Movielink for around $50 million in cash and stock, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

Santa Monica, Calif.-based Movielink was launched in 2002 with $150 million from its backers, which include Hollywood studios MGM, Paramount, Sony Pictures, Universal Studios and Warner Bros.

The site sells downloadable movie rentals that expire after a set time, and recently enabled users to burn some downloaded films to DVDs that play on any player.

Blockbuster has gone online to challenge Netflix in the online DVD rentals market, and now may be looking for a quick means of countering new entries into the movie download space from Apple's iTunes Store, Amazon.com and Wal-Mart.

Related Links:
http://tinyurl.com/yql7f2 (WSJ)

http://www.movielink.com