Source: CNN Money
The rental retailer is in talks to acquire the movie download service, in addition to long-term contracts with major film studios
LOS ANGELES (Reuters) — Blockbuster Inc. is in talks to buy movie download service Movielink, including long-term contracts with Hollywood’s major studios to supply films and TV shows, for under $50 million in cash and stock, a source familiar with the situation said Thursday.
The proposed deal, which would bring Movielink’s technical and management teams to Blockbuster, is worth about $50 million in cash and stock but is still in negotiations, the source said.
Shares of Blockbuster rose 1 percent in morning trading on the New York Stock Exchange. Shares of rival Netflix also edged higher. Shares dropped for competitors Movie Gallery Inc. and Hastings Entertainment Inc.
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