Blockbuster Buys Into A Producer
H. Wayne Huizenga is taking underleveraged, cash-rich Blockbuster Entertainment on a shopping spree. On Mar. 8, it acquired 48% of the American Financial's Spelling Entertainment Group, a leader in the TV and film production industry, in a $141.5 million stock swap. Blockbuster has also teamed up with CBS to develop promotional videos to be distributed with movie rentals. The deals, together with Blockbuster's recently purchased 35% stake in Republic Pictures, adds more titles for Blockbuster's 3,127 video stores. They also create a massive film library that could stock a future Blockbuster cable channel.