Video rental company Movie Gallery became the third company to vie for Hollywood Entertainment Corp., claiming Friday that its offer was more likely to win antitrust approval than the $700 million bid made by industry leader Blockbuster Inc. last week.
Movie Gallery declined to say how much it was offering, but analysts speculated it would have to be at least $12.50 per Hollywood share -- or roughly $760 million -- to be competitive. Blockbuster is offering $11.50 per share, while Leonard Green & Partners LP, a Los Angeles buyout firm, is offering $10.25 per share.
"Blockbuster's proposed acquisition would create a dominant player with significant competitive overlap in the vast majority of markets served by Blockbuster and Hollywood Entertainment," Movie Gallery chairman and chief executive Joe Malugen said in a statement.
"We do not believe regulators will adopt the expanded view of the market that Blockbuster needs to complete a transaction."