Hollywood Entertainment Corp., the No. 2 U.S. video store chain, has agreed to take less cash in a buyout deal with Leonard Green & Partners, citing changing industry conditions, Hollywood said.
Under the new deal, shareholders would receive $10.25 in cash per share, down from a previous offer of $14. The lower offer, which came despite growing calls for the company to abandon a buyout, values the chain at about $619.7 million.
When the offer was unveiled in March, the Portland, Ore.-based company was valued at $890 million. Its stock rose 54 cents to $9.94 on Nasdaq.