What is Carl Icahn planning? Ups his stake in Hollywood Entertainment (HLYW) and Blockbuster (BBI)

Includes: BBI, MVGRQ
by: David Strahlberg

Carl Icahn controlled funds have increased their collective stake in Hollywood Entertainment (ticker: HLYW) to 10.8% from 9.5% in December 2004.  He has also upped his holdings in Blockbuster (ticker: BBI) Class A shares to 10% from 9.2%.   What is he planning?

Quick comment: Recently, HLYW ex-CEO Mark Wattles announced his intention to sell half of his shares and expressed an interest in buying 50% of HLYW stores from Blockbuster (ticker: BBI) to help it acquire HLYW.  In that SEC filing, Wattles referenced financier Carl Icahn as follow:

In addition, following Mr. Carl
Icahn disclosing that he had become a shareholder of the Company, Mr. Wattles
has had discussions with Mr. Icahn regarding the industry and possible
transactions involving the Company.

Now that BBI has dropped out of the picture, is Wattles planning on teaming up with Icahn for a management buyout?  Or perhaps Icahn has plans of his own.  Just when you thought this saga was  over......  Stay tuned.