New York City, Hollywood Entertainment Corp. unanimously recommends that its shareholders reject an offer from Blockbuster, and take a lower bid from Movie Gallery. Hollywood pointed to “uncertainties and possible delays” in the Blockbuster direct-to-shareholder bid, which came in at $14.50 per share. That compares to the previously agreed-upon $13.25 per share bid from Movie Gallery.
Dothan, Ala.-based Movie Gallery applauded the Hollywood board’s recommendation. “Movie Gallery already has received regulatory approval to proceed with its acquisition of Hollywood, whereas Blockbuster’s proposed transaction remains the subject of an investigation by the Federal Trade Commission,” the company said in a statement.