ThunderJon used our news submit to tell us "Looks like Blockbuster
is attempting to build an unrivaled B&M distribution supply chain to
supplement it"s so far successful online venture."
Hard to believe on the heels of all these price
cuts that Blockbuster is ready to make such an offer for Hollywood
Entertainment. Blockbuster is the number one movie rental entity at the moment
and this bid is for the number two firm. Better known by most as Hollywood Video
Blockbuster has purportedly made an offer of $11.50 a share which is 17 percent
over the present value of the companies stock. In addition they will assume some
$350 million in Holllywood Entertainments debt.
The deal would give Blockbuster, which already |
The article goes on to point out that this takeover bid makes little
sense, at least for Blockbuster. You have a market where retailers such as
Walmart are selling DVD's so cheap, they are luring away renters. Couple that
with the recent online rental price wars and you can see that Hollywood
Entertainment should jump on this offer while it's available.
I personally would not like to see Hollywood Video get swallowed up as it
happens to be my preferred brick and mortar establishment to rent movies from.
But, I did not realise how bad they were hurting financially
either.
Source: MSNBC
