NEW YORK (AFP) - Blockbuster, the leading US video rental chain, made a bid to swallow rival Hollywood Entertainment spotlighting the sector facing tough times due to emerging technology.
The company just spun off by Viacom unveiled an offer to acquire Hollywood Entertainment for one billion dollars, including debt.
Blockbuster said it would offer 11.50 dollars a share for Hollywood Entertainment, a 17 percent premium over Hollywood's closing price on Wednesday.
The video rental business has lost much of its luster in recent years. Forrester, a research company, has essentially predicted that the industry could be vulnerable to video-on-demand services, which can be accessed from a personal computer at home.
Blockbuster said it has held no detailed negotiations with Hollywood Entertainment.
11/11/2004 - 22:59 GMT - AFP