Hollywood Video, operated from Wilsonville, Oregon, is a video tape, video game and DVD rental shop chain in the United States.

Created in 1988 by former CEO Mark Wattles, it was the largest direct competitor of Blockbuster Video, until it was purchased by Movie Gallery. It also operates Game Crazy departments within its stores (and a few free-standing locations), which are dedicated to buying, selling and trading video games and related items. Employees of Hollywood Video are expected to memorize and live by the mission statement, "Hollywood is dedicated to exceptional guest experiences delivered with genuine warmth and friendliness".

Purchase of Hollywood Video

Unhappy with the direction that the board of directors was taking the company, founder Mark Wattles attempted to purchase the company back to go private, with the help of Leonard Green & Partners, a buyout firm. This began a bidding war for Hollywood Video, starting the chain of events that would bring Hollywood Video under Movie Gallery's flag.

Hollywood Video

was the target of a hostile takeover attempt, initially announced at the end of December 2004 by competitor Blockbuster Video. In February 2005, Blockbuster announced an exchange offer of $14.50 per share ($11.50 cash and $3.00 in Blockbuster shares). Lemon Laws in California

In order to create a stronger position against the hostile takeover, Hollywood Video agreed to a buyout on Monday, January 10, 2005 by its smaller competitor Movie Gallery. Movie Gallery paid $860 million, $13.25 per share, and the assumption of $380 million in debt. Stocks closed at $13.85 on January 10th after this news. Blockbuster then dropped its purchase plans, citing anti-trust concerns. Movie Gallery completed its purchase of Hollywood Video on April 27, 2005.

Movie Gallery today

Today, Movie Gallery operates about 2,400 Movie Gallery and 2,000 Hollywood Video locations in the United States. Approximately 650 of the Hollywood locations include Game Crazy departments, and there are around 20 separate Game Crazy stores. Canadian operations include over 200 "Movie Gallery" branded stores, as well as approximately 60 under the VHQ brand in western Canada. There are also 9 stores in Mexico.