Viacom expected to reveal sell-off
13 April 2012
MEDIA giant Viacom was today expected to unveil plans to spin off its video and DVD rental arm Blockbuster.
It has not ruled out selling its 82% stake to private buyers but is more likely to offer shareholders its own shares in exchange for those they hold in publicly-listed Blockbuster, says the Wall Street Journal.
The move follows the American group's failure to secure a satisfactory price for the chain from private equity buyers. Potential buyers have been discouraged by increasing competition from satellite broadcasters and concerns that the rental market is in irreversible decline.
