Blockbuster won’t back down
Video chain sticking to takeover plans
Blockbuster is sticking to its guns and pressing on with plans for a hostile takeover of US rival Hollywood Entertainment.
The world’s biggest video rental company launched its $11.50 a share bid in November, aiming to scupper a deal between Hollywood, the number two company, and Movie Gallery, the number three.
US regulator the Federal Trade Commission, which has already approved the Hollywood/Movie Gallery deal, has filed a court motion to halt Blockbuster’s bid.
The UA antitrust authorities have ruled that Blockbuster has provided “insufficient and inaccurate” details about its plans for the takeover. Blockbuster insists it is pressing on with the bid, and will provide the FTC with any more details it requires.
In a market whch is being squeezed by DVD sales through general retailers, online rentals and internet video downloads, all the major chains are looking to secure market share.
Blockbuster Chairman John Antioco said in November: “We believe this proposed transaction better positions Blockbuster to compete in the rapidly changing home entertainment marketplace, while simultaneously benefiting consumers as well as Blockbuster and Hollywood Entertainment shareholders.”
