Printer Friendly

BLOCKBUSTER ENTERTAINMENT ANNOUNCES AGREEMENT TO ACQUIRE SOUND WAREHOUSE AND MUSIC PLUS

 BLOCKBUSTER ENTERTAINMENT ANNOUNCES AGREEMENT
 TO ACQUIRE SOUND WAREHOUSE AND MUSIC PLUS
 FORT LAUDERDALE, Fla., Oct. 19 /PRNewswire/ -- Blockbuster Entertainment Corporation (NYSE: BV) today announced that the company signed definitive merger agreements providing for the acquisition of the Sound Warehouse and Music Plus retailing chains from companies controlled by Shamrock Holdings of California, Inc. Sound Warehouse and Music Plus are among the largest specialty retailers of prerecorded music in the United States with 236 stores operating in 35 markets.
 The company will acquire the equity and pay off the outstanding indebtedness of the business using a combination of cash and shares of the company's common stock, together having a value of approximately $185 million. Based on recent closing sales prices, the company estimates that it would issue approximately five million shares of its common stock at the closing.
 Under certain circumstances, the company may pay the full purchase price in cash. The closing of the transactions are subject to certain customary conditions and approvals.
 H. Wayne Huizenga, chairman of the board and chief executive officer of Blockbuster, stated that "We are excited about this opportunity to continue to expand the company's base in the entertainment business. We believe the prerecorded music business is significant in size, generating approximately $24 billion in worldwide revenue last year, according to industry analysts.
 "Sound Warehouse and Music Plus are strong platforms for our entry into the music retailing business because their retailing approach is very similar to the Blockbuster concept. We believe that the size of the stores are significantly larger than most music retailing stores. This larger size will provide the company with the opportunity to add other complementary entertainment products to these stores, thus beginning development of our entertainment store of the future. We believe that the synergies which will result from the addition of the Sound Warehouse and Music Plus operations to the Blockbuster system present unique growth opportunities for Blockbuster in the prerecorded music business as well as in the entertainment industry generally."
 Mark S. Siegel, chairman of the board of Sound Warehouse and Music Plus, commented that, "Blockbuster's offer presented and excellent opportunity for our employees and our investors. We are delighted that they selected Sound Warehouse and Music Plus as their springboard into the music retailing industry. Blockbuster's proven way of working with and developing personnel will enhance our growth and development. Blockbuster has built a great retail chain, and we are delighted to become part of the Blockbuster family."
 -0- 10/19/92
 /CONTACT: Steven R. Berrard or Gregory K. Fairbanks of Blockbuster Entertainment Corporation, 305-832-3522/
 (BV) CO: Blockbuster Entertainment Corp.; Sound Warehouse; Music Plus;
 Shamrock Holdings of California, Inc. ST: Florida, California IN: ENT SU: TNM


JB-SS -- FL003 -- 1401 10/19/92 09:22 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 19, 1992
Words:458
Previous Article:/Repeating for points missed/
Next Article:VAN DORN ANNOUNCES 1992 THIRD QUARTER AND NINE MONTHS RESULTS
Topics:


Related Articles
BLOCKBUSTER ANNOUNCES RECOMMENDED OFFER FOR U.K.-BASED CITYVISION PLC
BLOCKBUSTER TO MERGE WITH ITS LARGEST FRANCHISE OWNER
/C O R R E C T I O N -- BLOCKBUSTER TO MERGE WITH ITS LARGEST FRANCHISE OWNER/
SPELLING ENTERTAINMENT AND REPUBLIC PICTURES ANNOUNCE AGREEMENT IN PRINCIPLE TO MERGE
BLOCKBUSTER TO ACQUIRE U.S. SUPER CLUB OPERATIONS FROM PHILIPS ELECTRONICS
BLOCKBUSTER TO SELL LAND
BLOCKBUSTER ACQUIRES CONTROLLING INTEREST IN MEXICAN FRANCHISEE
BLOCKBUSTER ENTERTAINMENT ANNOUNCES NEW WORLDWIDE RETAIL OPERATIONS STRUCTURE
BLOCKBUSTER VIDEO ENTERS SCANDINAVIAN MARKET WITH DENMARK ACQUISITION
Blockbuster Enters the Irish Market with Agreement to Acquire Xtra-vision

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