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Blockbuster Online Won't Pursue IPO

August 08, 2000|From Reuters

NEW YORK — Blockbuster.com, the online unit of video rental store chain Blockbuster Inc. has decided not to pursue an initial public offering for the time being, a company spokeswoman said Monday.

The online unit plans to become a leading broadband destination site and had been looking at two ways of reaching its goal: building a server network, which would require a large dose of capital from investors; or forming an alliance with a company that would provide the needed architecture.

"Through our recent alliance with Enron, in one swift move we got the distribution network we needed. . . . For the time being, we think there is more value not to do that [an IPO]," said Karen Raskopf, senior vice president of corporate communications at Blockbuster, which is a unit of entertainment giant Viacom Inc.

The Dallas-based company formed a 20-year exclusive pact with Enron Broadband Services to deliver a Blockbuster entertainment service, initially featuring movies on demand, via Enron's network.

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