PHILIPS AND BLOCKBUSTER ESTABLISH RELATIONSHIP
PHILIPS AND BLOCKBUSTER ESTABLISH RELATIONSHIP FORT LAUDERDALE, Fla., Nov. 18 /PRNewswire/ -- Philips Electronics
N.V. ("Philips") and Blockbuster Entertainment Corporation (NYSE: BV) ("Blockbuster") jointly announced today that Philips has committed to invest in Blockbuster approximately $66 million. The funding of the commitment is to occur on or before Jan. 15, 1992. The investment is intended to develop jointly with Blockbuster business opportunities in the home entertainment industry or result in the acquisition of six million shares of Blockbuster common stock.
Should Philips exercise its right to develop jointly with Blockbuster business opportunities, then it will have the further option to acquire five million shares of Blockbuster common stock at $11 per share by June 30, 1992. Jan D. Timmer, president of Philips, stated that "cooperating with Blockbuster, the world's largest video rental company, will give Philips the opportunity to benefit from Blockbuster's wide expertise and skills in this field." H. Wayne Huizenga, chairman of Blockbuster Entertainment, added that he was "pleased to announce this new relationship and the opportunities created by it. We anticipate that as an additional benefit of this relationship, Blockbuster will promote Philips' recently introduced Compact Disc Interactive systems and software (CD-I) in its company-owned stores." Blockbuster is the largest operator of rental Superstores in the United States. At Sept. 30, 1991, there were 1,934 stores (1,010 company-owned and 924 franchised) in North America, South America, the Far East and Europe. For both the year ended Dec. 31, 1990 and the nine months ended Sept. 30, 1991, Blockbuster had systemwide revenue of $1.1 billion. Its shares are traded on the New York Stock Exchange. Philips, with headquarters in Eindhoven, The Netherlands, is one of the world's largest electronics companies, with sales of $30.8 billion in 1990, and at Sept. 30, 1991 had 250,200 employees worldwide. Its products include lighting, consumer electronics, components, semiconductors, personal computers, communication systems, medical systems, industrial electronics and domestic appliances and personal care products. Its shares are traded on 19 stock exchanges around the world, including the Amsterdam and New York Stock exchanges as well as the stock exchanges in London and Tokyo. -0- 11/18/91 R /CONTACT: Steve Berrard of Blockbuster Entertainment Corporation, 305-524-8200/ (BV) CO: Blockbuster Entertainment Corporation; Philips Electronics N.V. ST: Florida IN: REA SU: SS-AW -- FL001 -- 1352 11/18/91 10:55 EST
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|Date:||Nov 18, 1991|
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