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BLOCKBUSTER TRIES TO BUST VIDEO CHAIN MERGER Thursday, February 3 2005 The No. 2 and No. 3 video store chains, who had announced a merger agreement last month, may have been feeling the blues Wednesday after Blockbuster announced that it planned to break up the deal by launching a hostile takeover attempt. Hollywood Entertainment, which operates the Hollywood Video chain had signed a deal with Movie Gallery to be acquired for $13.25. But Blockbuster is now going directly to shareholders offering them $11.50 in cash and (more) MOVIE GALLERY REWINDS DEAL TO BUY HOLLYWOOD VIDEO Tuesday, January 11 2005 The video-rental chain Movie Gallery said Monday that it had reached a deal to acquire Hollywood Entertainment, the parent of the Hollywood Video chain, for $850 million. Analysts expected that the deal would be challenged by the nation's leading chain, Blockbuster, which has also offered a deal to Hollywood, the No. 2 chain. (Movie Gallery is No. 3.) Blockbuster CEO John Antioco said Monday that he was "assessing the situation." (more) |
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An angry Carl Icahn, the corporate raider best known for his 1985 takeover of TWA, lashed out at Blockbuster CEO John Antioco Thursday, accusing him of going on a "spending spree with shareholders' money," bungling the effort to take over rival Hollywood Video, while all the while receiving an "unconscionable" pay package that includes $7.2 million in salary, $5 million in options and $28 million in restricted stock. He demanded that spending be brought under control, that Antioco's "egregious" bonuses be curtailed; that greater dividends be paid to shareholders, and that any offers for the company be duly considered. He threatened to take control of Blockbuster's board next year if his demands are not met. He is by far Blockbuster's largest shareholder.
