RUMOR MILL
Last November, Blockbuster said it would sell about 3% of Blockbuster.com to AOL for $30 million as part of a broader marketing alliance between the two companies.
Monday, August 7, 2000
BLOCKBUSTER BACKS OUT OF IPO PLANS
Wow! What Indifference
The number of Internet spin-offs planned by traditional entertainment companies continues to decline, with Blockbuster becoming the latest company to give up any thought of taking public its Blockbuster.com online unit, The Wall Street Journal reports.
Blockbuster said the main reason behind its business strategy was the evolution of its electronic entertainment services. The video-rental giant, a majority-owned unit of Viacom, said it also doesn't plan to bring strategic investors such as AOL into Blockbuster.com.
Last November, Blockbuster said it would sell about 3% of Blockbuster.com to AOL for $30 million as part of a broader marketing alliance between the two companies. Even so, the marketing alliance with AOL stays in place, both companies said.
Blockbuster, which revealed its latest plans in a conference call with analysts last week for its second-quarter earnings, said the change in market conditions was a factor in its decision.
