Blockbuster withdraws Hollywood merger bid
Blockbuster said yesterday that it has dropped its $991 million offer to acquire rival video-rental chain Hollywood Entertainment, which officially expired Thursday at midnight.
Faced with a stagnant video-rental market and increased competition for consumers' entertainment dollars, Blockbuster had hoped to expand its dominance of the market with the proposed acquisition.
In a statement, Blockbuster Chairman and Chief Executive John Antioco said that the company decided the merger was not in its best interests "after a careful review of all of the available facts and circumstances."
Blockbuster officials had said earlier this month that the Federal Trade Commission (FTC) would probably try to block the deal on antitrust grounds.