Blockbuster Entertainment is branching out of the video-rental business. On Oct. 19, the Fort Lauderdale (Fla.) company agreed to buy Sound Warehouse and Music Plus in a deal valued at $185 million in stock and cash. The music retailers operate 236 stores in 35 markets.

The move is part of Blockbuster's plan to diversify into "home entertainment," with stores carrying a broad array of entertainment products.

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