Printer Friendly

BLOCKBUSTER TO MERGE WITH ITS LARGEST FRANCHISE OWNER

 FORT LAUDERDALE, Fla., July 16 /PRNewswire/ -- Blockbuster Entertainment Corporation (NYSE: BV) announced today that it has reached an agreement in principle to merge with WJB Video Limited Partnership and certain of its affiliates ("WJB") in a transaction to be accounted for as a "pooling of interests." The agreement in principle provides that Blockbuster will exchange 7 million shares of its common stock for the equity interest of WJB. As a result of the transaction contemplated by the agreement in principle, Blockbuster would add 209 Blockbuster Video stores currently owned and operated under franchise agreements by WJB.
 WJB is Blockbuster's largest franchise owner and operates primarily in the southeastern United States. One of the WJB affiliates included in the merger is a franchise owner of Discovery Zone, Inc. with the right to develop 50 FunCenters, primarily in the southeastern United States. Such entity currently owns and operates six FunCenters. Another WJB affiliate included in the transaction owns the real estate on which 50 of WJB's Blockbuster Video stores are located.
 George D. Johnson Jr., the managing general partner of WJB, has agreed that upon completion of the transaction he will become the president of Blockbuster's Consumer Division, which includes the company's domestic home video retailing, domestic music retailing and Discovery Zone businesses. Johnson commented that "We are merging WJB with Blockbuster because we have fully developed video stores under our existing franchise agreements and desire to use our expertise in helping Blockbuster continue its development of video stores, music stores and Discovery Zone FunCenters across North America." He added that "the partners of WJB believe the opportunity for equity appreciation is greatly enhanced as stockholders of Blockbuster. He concluded by stating, "I am very enthusiastic about joining the Blockbuster team." Johnson has no current plans to sell any of the Blockbuster shares he receives in the transaction.
 H. Wayne Huizenga, chairman and chief executive officer of Blockbuster, commented that "the merger with WJB provides outstanding opportunities for Blockbuster to own and operate some of our most profitable superstores and to broaden the base of company-owned stores in the southeastern United States." He added that "we are excited about the addition of Mr. Johnson and the talented group of WJB employees."
 Blockbuster Entertainment Corporation is a leading entertainment company, the principal businesses of which are home video and music retailing. The company's video division includes 3,170 video stores operating in the system as of March 31, 1993, of which 1,141 stores were franchise-owned and 2,029 were company-owned. The Blockbuster Video system operates in 48 states and in nine international markets. The blockbuster music division includes 237 Sound Warehouse and Music Plus stores operating in 40 metropolitan areas in the United States and 15 stores throughout Continental Europe, Australia and the United States owned by a joint venture with the Virgin Retail Group. The company also owns approximately 21 percent of Discovery Zone, Inc., has the right to develop up to 50 Discovery Zone FunCenters in the United States and is a joint venture partner with Discovery Zone in a partnership which has the right to develop up to 10 FunCenters in the United Kingdom. The company also owns approximately 63.5 percent of Spelling Entertainment Group Inc. and approximately 37 percent of Republic Pictures Corporation, leading producers and distributors of filmed entertainment.
 WJB has previously entered into a definitive agreement to acquire UI Video Holdings, Inc. for an aggregate of $95 million in cash. UI Video, Blockbuster's second largest franchise owner, owns and operates 112 Blockbuster Video stores located primarily in the northeastern United States and California. Blockbuster intends to consummate the acquisition of UI Video on substantially similar terms as set forth in the agreements entered into with WJB.
 The closing of the transaction is subject to certain customary conditions including the execution of a definitive merger agreement.
 -0- 7/16/93 R
 /CONTACT: Steven R. Berrard, 305-779-3640 (home) or Gregory K. Fairbanks, 305-832-3000, both of Blockbuster Entertainment Corporation/
 (BV)


CO: Blockbuster Entertainment Corporation; WJB Video Limited
 Partnership ST: Florida IN: ENT REA SU: TNM


JB-SS -- FL012X -- 2831 07/19/93 07:02 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 19, 1993
Words:686
Previous Article:QUARTERLY DRIVING COSTS UP .2 CENT PER MILE, AAA SAYS
Next Article:McDONNELL DOUGLAS REPORTS RESULTS
Topics:


Related Articles
BLOCKBUSTER ANNOUNCES RECOMMENDED OFFER FOR U.K.-BASED CITYVISION PLC
BLOCKBUSTER OPENS 3,000TH SYSTEM STORE, 1,000TH IN INTERNATIONAL DIVISION
/C O R R E C T I O N -- BLOCKBUSTER TO MERGE WITH ITS LARGEST FRANCHISE OWNER/
BLOCKBUSTER TO ACQUIRE U.S. SUPER CLUB OPERATIONS FROM PHILIPS ELECTRONICS
BLOCKBUSTER REPORTS RECORD RESULTS;
DISCOVERY ZONE CLOSES LEAPS & BOUNDS MERGER; BLOCKBUSTER COMPLETES DZ EQUITY PURCHASE
BLOCKBUSTER PRESENTS 16 AWARDS AT FRANCHISE ANNUAL MARKETING EXPO
BLOCKBUSTER VIDEO MARKS DECADE AS LEADER OF HOME-VIDEO INDUSTRY
THERE GOES THE NEIGHBORHOOD.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters