Hollywood Entertainment Rejects Bid

By: Associated Press
By: Associated Press

Dallas-based Blockbuster has decided not to extend its tender offer for shares in Oregon-based rival video retailer Hollywood Entertainment.

The tender offer expired late Thursday night.

A statement issued today by the nation's video-rental leader, CEO John Antioco says Blockbuster based its decision on Hollywood's recent public filings. He also said a timely resolution of its request for federal regulatory clearance of the takeover bid was unlikely.

Blockbuster had faced antitrust issues because it's already the largest movie rental chain in the nation and competes in the same markets as Number Two Hollywood.

The statement said Blockbuster would return all tendered Hollywood shares and notes.

Hollywood's board has agreed to a purchase by third-ranked video renter, Dothan-based Movie Gallery for about $900 million.

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