Rival Rental Chain

Blockbuster Abandons Bid to Acquire Rival Rental Chain Hollywood Video

Authored by Mark Hefflinger on March 28, 2005 - 8:20am.

Dallas -- Video rental giant Blockbuster has ended its bid to acquire Hollywood Entertainment, the nation's second-largest rental chain, in part due to anti-trust concerns raised by the Securities and Exchange Commission. Blockbuster had offered about $985 million for Hollywood, which officially rejected Blockbuster's bid in favor of a rival $900 million offer from Movie Gallery, the nation's third-largest rental chain. "Among those things that played prominently for us were Hollywood's recent public filings and the unlikely resolution of our request for regulatory clearance on an acceptable timetable. Given the current circumstances, in our judgment it is not in Blockbuster's best interest to continue to pursue the acquisition," said Blockbuster chairman and CEO John Antioco.

tags: Bid | Blockbuster | Hollywood Video | Rival Rental Chain |