Blockbuster has backed out of its proposed takeover of Hollywood Entertainment.
LOS ANGELES -- Blockbuster has backed out of its proposed takeover of Hollywood Entertainment.
In an announcement on March 25, Blockbuster said that its $14.50-per-share offer to acquire Hollywood, a deal valued at about $1.3 billion, had expired and would not be extended.
"Our decision not to extend our offers was reached after a careful review of all of the available facts and circumstances," Blockbuster chairman/CEO John Antioco says. "Among those things that played prominently for us were Hollywood's recent public filings and the unlikely resolution of our request for regulatory clearance on an acceptable timetable. Given the current circumstances, in our judgment it is not in Blockbuster's best interest to continue to pursue the acquisition."
Earlier in the week, Hollywood's largest shareholder and former CEO, Mark Wattles, offered to buy up to half of Hollywood's store locations in an effort to make the Blockbuster deal more palatable to the Federal Trade Commission.
The FTC has approved a bid from Movie Gallery, at $13.25 per share, to acquire Hollywood.