Posted on: Friday, November 12, 2004

Blockbuster bids for rival

Associated Press

DALLAS — Blockbuster Inc. has offered $700 million for rival Hollywood Entertainment Corp. in a deal that would extend Blockbuster's position as the world's largest movie rental company.

Blockbuster said in a news release yesterday it has "expressed an interest" in acquiring Hollywood Entertainment for $11.50 per share, a 17 percent premium over Hollywood Entertainment's closing price of $9.80 on Wednesday.

In addition, Dallas-based Blockbuster would assume about $350 million in Wilsonville, Ore.-based Hollywood Entertainment debt in the deal.