The WSJ (Subscription) reports that according to sources familiar with the matter Blockbuster is in advanced talks to acquire Movielink LLC, a digital movie download service.
It is clear that Blockbuster needs to do something in the digital delivery area as well, now that Netflix, Wal-mart and Amazon are in this game.
Movielink is in business since 2002 and did not get too far. The deal is said to be less than $50 million. The acquisition of Movielink would get Blockbuster quickly up to speed in a business were actually not much money is made right now. Still digital delivery is the future, we will let loose of the disc.
Movielink is actually jointly owned by movie studios Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros. Studios and Blockbuster was in talks to buy the company already once back in 2005.
There is official word if this deal is indeed happening.
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