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Hollywood Entertainment says its board of directors has unanimously recommended that shareholders reject a hostile takeover bid by rival Blockbuster.

The Hollywood board says there are "uncertainties and possible delays" in the Blockbuster offer. And those outweigh the higher price that Blockbuster is willing to pay over Dothan-based Movie Gallery.

Hollywood, based in Oregon, announced last month it had agreed to a purchase by Movie Gallery for about $900 million.

The Blockbuster offer is for about $985 million.

But Blockbuster faces antitrust issues because it is the largest movie rental chain in the nation and competes in the same markets as Number Two Hollywood.

And Number Three Movie Gallery, serves a mostly rural market and does Not compete directly with the two larger chains.