Blockbuster to Sell Rhino to GameStop
Monday, January 8, 2007
Movie rental company Blockbuster Inc. said Friday it will sell its Rhino Video Games chain to video game retailer GameStop Corp. for an undisclosed sum.
The sale is expected to close by the end of this month.
Rhino is a regional store chain specializing in buying, selling and trading video games. It has 72 stores in the Southeastern U.S.
Blockbuster said the sale is in line with its strategy to focus on company-branded assets and the video rental market. The company is integrating its in-store and online business to battle competition from online movie rental company Netflix Inc.
Blockbuster's shares closed down 8 cents at $5.70 on the NYSE, and jumped 15 cents or 2.6 percent to $5.85 in after-hours electronic trading. In the intraday session the stock hit a new 52-week high of $5.90, beating its previous year-high of $5.81.
GameStop's shares closed up 8 cents at $55.49 on the New York Stock Exchange.
The sale is expected to close by the end of this month.
Rhino is a regional store chain specializing in buying, selling and trading video games. It has 72 stores in the Southeastern U.S.
Blockbuster said the sale is in line with its strategy to focus on company-branded assets and the video rental market. The company is integrating its in-store and online business to battle competition from online movie rental company Netflix Inc.
Blockbuster's shares closed down 8 cents at $5.70 on the NYSE, and jumped 15 cents or 2.6 percent to $5.85 in after-hours electronic trading. In the intraday session the stock hit a new 52-week high of $5.90, beating its previous year-high of $5.81.
GameStop's shares closed up 8 cents at $55.49 on the New York Stock Exchange.
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