Blockbuster stock sale seen as weak
Wednesday, Aug. 11, 1999 | 10:38 a.m.
THE ASSOCIATED PRESS
DALLAS -- Blockbuster Inc., the world's largest chain of home-video rental stores, went public with a stock offering that analysts described as weak.
Blockbuster sold 31 million shares to the public at $15 Tuesday, raising $465 million. The shares were priced $1 below the $16 to $18 range set before the sale.
While Blockbuster's revenue increase 17 percent last year to $3.89 billion, investors worry its rental business is threatened by "video-on-demand" technology that allows consumers to watch movies delivered via satellite and cable television systems.
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