Blockbuster Drops Out of Hollywood Bid War

Blockbuster has dropped its offer to acquire all of the outstanding shares of Hollywood Entertainment.

The bid was valued at nearly $1 billion.

“Our decision not to extend our offers was reached after a careful review of all of the available facts and circumstances. 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,” said John Antioco, Blockbuster Chairman and CEO.

According to a Miami Herald article:

“Blockbuster had offered a higher bid than Movie Gallery, but the price difference was not as crucial as the fact that Movie Gallery won swift antitrust approval while Blockbuster ran into problems at the Federal Trade Commission.

Blockbuster conceded it was unlikely to resolve hurdles at the FTC before Hollywood shareholders vote on the Movie Gallery bid April 22. The company had grown more pessimistic about overcoming FTC objections after a brief meeting with regulators in Washington two weeks ago.”

Hollywood will be acquired by Movie Gallery who has been in a bidding war with Blockbuster for the company.

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