Blockbuster Drops Takeover Bid for Hollywood Entertainment
Dallas, Blockbuster Entertainment Inc. today said it has dropped its bid for rival Hollywood Entertainment Corp. Hollywood Entertainment, the No. 2 video retailer after Blockbuster, resisted the bid because of likely opposition from the Federal Trade Commission (FTC). Hollywood’s board has instead accepted the FTC-approved sale to Dothan, Ala.-based Movie Gallery Inc., the third-biggest industry player. Blockbuster had offered $14.50 per share in cash and stock, while Movie Gallery proposed $13.25 per share in cash, a deal worth $850 million.
“Our decision not to extend our offer was reached after a careful review of all the available facts and circumstances,” John Antioco, chairman and CEO of Blockbuster, said in a statement.
The FTC had blocked a Blockbuster-Hollywood deal in 1999 on grounds that the merger would have given the combined entity too much pricing power. Blockbuster officials said they dropped their bid in part because of the unlikelihood of obtaining FTC clearance in a timely way, according to reports.
Disney Store Expands to Outlet Arena
Glendale, Calif., Disney Store North America, a wholly owned subsidiary of The Children’s Place Retail Stores, will expand into the retail outlet arena. Its first outlet will measure more than 7,000 sq. ft. and will open in New York this weekend at the Woodbury Common Premium Outlets. Five additional outlets are planned to open this year in California, Arizona, Illinois, Tennessee and Ontario, Canada. The move marks the first adjustment to Disney Store’s real estate strategy since The Children’s Place acquired the chain in November.
Barnes & Noble to Repurchase $200M in Stock
New York City, Barnes & Noble Inc. has authorized a share repurchase program of up to $200 million of its common shares. The repurchase program follows a previous, $250 million program that the retailer recently completed.