Investors applauded Hollywood Entertainment Corp. on Friday morning,
snatching up shares of the No. 2 chain of video stores after it made
a bold Internet play.
[it seems the competition for online video sales is heating up. Note
that the barrier to entry is low ... Reel.com has been in biz. only
15 months.]
The Portland, Ore.-based company (HLYW), which runs the Hollywood
Video outlets, agreed Thursday to purchase Internet startup Reel.com
for about $100 million in stock and cash.
Acquiring the 15-month old Reel.com makes the
bricks-and-mortar retailer, overnight, a major
e-commerce factor. Reel.com, based in Berkeley,
Calif., claims it's the largest seller of videos on
the Internet.
In a related transaction, CMG Ventures, Intel
Corp. (INTC), Paul Allen's Vulcan Ventures, and
former Blockbuster Entertainment vice chairman
Scott Beck will buy restricted shares in Hollywood
Entertainment. By converting its 34 percent stake
in Reel.com into Hollywood stock, CMG will
become Hollywood's biggest investor.
URL: biz.yahoo.com*http://cbs.marketwatch.com/archive/19980731/news/current/hlyw.htx?dist=yhoo |
