Blockbuster (BBI) drops its bid for Hollywood Entertainment (HLYW)

Blockbuster (ticker: BBI) announced that its tender for Hollywood Entertainment's (ticker: HLYW) equity and debt has expired, and that it is dropping its bid for the video rentailer.

Here's what Blockbuster's CEO, John Antiocho, had to say:

Our decision not to extend our offers was reached after a careful
review of all of the available facts and circumstances. Among those
things that played prominently for us were Hollywood's recent public
filings and the unlikely resolution of our request for regulatory
clearance on an acceptable timetable. Given the current circumstances,
in our judgment it is not in Blockbuster's best interest to continue to
pursue the acquisition.

Quick comment:  This wasn't a surprise considering how much resistance Blockbuster faced from HLYW, including HLYW's rejection of BBI's tender offer.   Now, Blockbuster must focus on the other elements of its troubled business including: the price war with Netflix (ticker: NFLX); its questionable and slightly deceptive 'No Late Fees' campaign; and its Movie Pass promotion.

Now that Blockbuster is out of the picture, it will be interesting to see what Mark Wattles, HLYW's founder and ex-CEO, pulls out of his bag.  Earlier this week, he announced his intention to sell up to half of his holdings (9.6% of the company) and his interest in buying 50% of HLYW's stores.