Video Ezy takeover of Blockbuster gets green light
Wednesday, September 19, 2007/
Video Ezy Australasia’s planned takeover of rival franchised video chain Blockbuster Australia has won the competition regulator’s go-ahead.
After six months of deliberation, the ACCC accepted undertakings from Video Ezy and let the deal go through. The combined business will have 900 franchisees and 40% of the country’s video stores.
Video Ezy has agreed not to seek exclusive arrangements for particular titles from film distributors and it will provide training to its franchisees on their competition obligations.
Under the proposed acquisition, Video Ezy will acquire all of the shares in Blockbuster and enter into a master franchise agreement with Blockbuster Inc (the global headquarters of Blockbuster is listed on the New York Stock Exchange) for 10 years with the possibility of renewal for a further 10 years.
Post-acquisition, Video Ezy will operate the Blockbuster brand of stores separately from the Video Ezy stores.