Reel.com snapped up by US video rental chain

NEWS Reel.com, a leading online video store, has been acquired by Hollywood Entertainment, the US-based rental chain. Although the site consists only of a simple - but extensive - database of movie titles, with editorial comment, it was worth around $100m to its real-world competitor. Hollywood Entertainment prides itself on its 1,000 retail outlets across 43 US states. But chief executive, Mark Wattles, described the acquisition as an ideal opportunity to move towards the electronic distribution of movies. Reel.com offers advanced search features, movie previews and special offers for buying and renting films. It can deliver films in as little as one or two days after processing. The acquisition, announced on 30 July, is expected to take place by the end of August. Hollywood Entertainment will pay $30m in cash and five million shares, which total a value of around $70m.