Blockbuster’s Going Hollywood

Blockbuster Inc. (Dallas) confirmed that it has expressed an interest in acquiring Hollywood Entertainment Corp. (Wilsonville, Ore.), its primary national competitor, for $11.50 per share in cash.

The total value of the transaction, including assumption of Hollywood Entertainment’s debt, would be approximately $1 billion.

“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,” said Blockbuster chairman and ceo John Antioco. “The proposed transaction would give us more ways to serve more customers by taking advantage of both companies’ combined store distribution capabilities and brand portfolios.”

Hollywood Entertainment runs about 1900 Hollywood Video rental superstores in 47 states and the District of Columbia. Blockbuster, the industry leader, operates nearly 6000 company-owned or franchised stores in the U.S., plus another nearly 3000 stores in 26 countries.