By Alabama Public Radio
Dothan, AL – Dothan-based Movie Gallery Incorporated has completed its almost $900 million acquisition of Hollywood Entertainment Corporation. The merger creates the second-largest North American home video retailer. Hollywood will continue operating under its brand name as a subsidiary of Movie Gallery. Movie Gallery CEO Joe Malugen says the merger increases geographic presence and improves distribution capabilities. Since Movie Gallery's initial public offering in 1994, the company has grown from less than 100 to about 4,500 stores. Blockbuster Incorporated abandoned a rival bid in March for Oregon-based Hollywood. Blockbuster says it dropped the plan because of anticipated resistance from federal antitrust authorities and because of opposition from Hollywood shareholders.