Breaking: Movie Gallery to Acquire Hollywood Entertainment
Posted on Monday January 10, 2005
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Just breaking on the wires:
Movie Gallery, Inc. today announced that it has entered into a definitive merger agreement with Hollywood Entertainment Corporation under which Movie Gallery will acquire all of the outstanding shares of Hollywood for $13.25 per share in cash or approximately $850 million. Under the terms of the agreement, which was unanimously approved by Movie Gallery's board of directors, Movie Gallery will also assume approximately $350 million of Hollywood's debt. The transaction has a value of $1.2 billion and is expected to be completed during the second quarter of 2005. Movie Gallery expects the transaction to be immediately accretive to its earnings per share.
The combined company will be the second largest North American video rental company with annual revenue of approximately $2.5 billion and approximately 4,500 stores located in all 50 U.S. states, Canada and Mexico.
What does this mean for Blockbuster's strategy? We'll post more on this soon...
Movie Gallery to Acquire Hollywood Entertainment for $13.25 Per Share in Cash
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