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Movie-rental company Blockbuster [BBI
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] is in advanced talks to acquire Movielink, an online movie-downloading company owned by the major Hollywood studios, the Wall Street Journal said on Thursday, citing people familiar with the matter.
The price was said to be less than $50 million in cash and stock but the deal would give Blockbuster a quick way into the online downloads business and bring much-needed marketing muscle to Movielink's efforts to increase market share now that big players like Apple's [AAPL
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] iTunes and Wal-Mart Stores [WMT
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] have jumped into the fray, the paper said.
Movielink is owned by a joint venture of Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros.
No one at Blockbuster or Movielink could immediately be reached for comment.
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