Blockbuster.com has opted against an initial public offering on the stock market in the wake of its deal with broadband distribution company Enron.
Last month, Blockbuster announced it would team with Enron Broadband Services to distribute movies on demand via the Dallas-based company’s high-speed network.
The alliance provides backbone to Blockbuster.com, which needed such a partner to make an imprint in the broadband arena. The movies-on-demand service, as outlined in a 20-year deal, would work on a pay-per-view model and could be delivered to either TV sets or home computers. The service is expected to launch in select cities by the end of the year.
Info and e-tail
Blockbuster.com currently provides Netizens with information about new releases at brick-and-mortar stores, video clips on recent releases and an e-commerce store.
Blockbuster.com isn’t the only entertainment company to rethink plans to enter the stock market since the Nasdaq nosedive in April. Fellow Viacom subsid MTVi Group, which filed an intent for an IPO in February, has since cooled to the idea — although it has yet to officially withdraw with the Securities & Exchange Commission.
Shares of Blockbuster were up almost 3% Monday to close at $10.88. The one-year trading high for the company is $17.13. Shares of Enron also closed up almost 3% to $80.27.
(Reuters contributed to this report.)