WSJ claims Blockbuster is trying to acquire Movielink

WSJ claims Blockbuster is trying to acquire Movielink

News media group Wall Street Journal has reported that movie rental company Blockbuster is trying to acquiring Movielink LLC.

Movielink is a company which provides downloadable movies for a price. It is owned and operated by major Hollywood studios.

This deal is expected to be worth less than $50 million in cash and stock is it succeeds. It would give Blockbuster easy access to entering the online downloads business.

It would also boost Movielink’s presence in the market where it faces competition from companies like Apple (iTunes) and Wal-Mart.

The two involved parties in this deal have not commented on the rumor floating in the market. Movielink is owned by a joint venture setup by movie studios including Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros.