Blockbuster Still Committed to Hollywood Entertainment

Dallas, Blockbuster announced that it remains committed to pursuing an acquisition of Hollywood Entertainment despite the recent announcement of the entry into a definitive merger agreement by Hollywood and Movie Gallery.

“We are disappointed that the special committee of Hollywood’s board of directors elected to enter into a merger agreement with Movie Gallery without giving Blockbuster a fair opportunity to participate in the auction process,” said John Antioco, Blockbuster chairman and CEO. “While it no longer makes sense at this time for Blockbuster to commence a tender offer at $11.50 per share in light of the Movie Gallery agreement, we are evaluating the price that Blockbuster would be willing to offer for Hollywood in light of various factors, including the termination fee to Movie Gallery that is included in the merger agreement.”