Blockbuster sells off its regional video game retailer to focus more on the movie rental business.
Blockbuster Reaches Agreement to Sell Rhino Video Games to GameStop
DALLAS, Jan. 5 /PRNewswire-FirstCall/ -- Blockbuster Inc.
(NYSE:BBI)(NYSE:BBI.B) today announced it has reached a definitive agreement
for the sale of its Rhino Video Games chain to GameStop Corp.
(NYSE:GME)(NYSE:GME.B) for an undisclosed price. The sale is expected to
close by the end of January.
Rhino Video Games is a regional retail chain specializing in buying, selling
and trading video games. Rhino currently has 72 stores located in the
Southeastern U.S. including Florida, Alabama, Tennessee, Georgia, North
Carolina and South Carolina.
John Antioco, Blockbuster Chairman and Chief Executive Officer, said,
"Today's announcement is in line with our goal to maintain focus on our
Blockbuster-branded assets. We wish the Rhino concept ongoing success under
its new ownership, and while games remain an integral part of our
Blockbuster business, we will continue to focus on growing our overall share
of the video rental market both through our stores and through BLOCKBUSTER
Total Access™, which gives our online subscribers the option of returning
their DVDs through the mail or exchanging them at a participating
BLOCKBUSTER® store for free in-store movie rentals."
R. Richard Fontaine, GameStop Chairman and Chief Executive Officer, said,
"The integration of the Rhino group into the growing portfolio of GameStop
stores will result in operating synergies while being accretive to earnings.
The location of most Rhino stores do not overlap existing GameStop sites,
and primarily serve secondary and tertiary markets where we have been very
successful. Furthermore, the Rhino business model, and a very game oriented
management team, will fit seamlessly into the GameStop culture."
