Hollywood - a happy ending ?

Hollywood Video (HLYW) has got a definite/higher offer of $13.25/share from Movie Gallery (MOVI). The market still expects a better offer (from Blockbuster ?) and Hollywood shares are trading at $14.2!

With my average cost for Hollywood shares at $13.8/share, any offer above that will make me happy - another profitable takeover!

What next ? It looks like Blockbuster is determined to kill Netflix by using its own deep pockets. Netflix (NFLX)'s only option is to branch out to real technology like delivering movies online, where it has made a move by partnering with Tivo. A 3-way merger/strong-partnership among Netflix (NFLX), Tivo (TIVO) and Real Networks (RNWK) is something these should target.

Netflix (NFLX) stock is attractive after the recent battering. A few buyers out there must be eyeing Netflix now. These include Amazon, Time Warner's AOL and Interactive Corp.. While Netflix CEO, in past interviews, had ruled out selling the company I definitely think he is considering offers seriously!

What will Blockbuster and Movie Gallery target next ? I think they will attempt to get into games more aggressively, possibly buying out Gamestop (GME) or Electronics Boutique (ELBO). Gamestop is attractive at its current price. I own a few of Electronics Boutique, and looking to add a few of Gamestop soon.