Article: Hollywood Entertainment agrees to buyout by Movie Gallery

RUKMINI CALLIMACHI, Associated Press Writer
AP Worldstream
01-11-2005
Dateline: PORTLAND, Oregon
Video rental giant Hollywood Entertainment Corp. has agreed to a buyout offer of nearly $850 million (euro648.71 million) from smaller rival Movie Gallery Inc. in a deal that would create a stronger challenger to the industry leader, Blockbuster Inc.

But in a sign the fight for Hollywood Entertainment may not be over, Blockbuster said it was still interested in buying Hollywood.

Blockbuster chief executive John Antioco, speaking at an investor conference in Phoenix, said his company would "still love to acquire Hollywood Video. That would be No. 1 on our radar screen."

Speculation of a bidding war ...

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