Viacom’s Blockbuster Files to Offer Shares

Blockbuster Inc. filed to sell its shares to the public in an initial public offering, a long-awaited move toward parent Viacom’s plan to spin off the video chain by the end of the year. Viacom is expected to sell up to a 20% stake in the company. In its filing with the Securities and Exchange Commission, Blockbuster did not disclose how many Class A shares it planned to offer or give a price range for the shares. Viacom acquired Blockbuster for $8.4 billion in 1994, when it acquired Paramount Communications. The nation’s biggest video chain was plagued by problems shortly after Viacom acquired it but has since revived after a management shake-up. Its earnings have softened recently, however, due in part to higher marketing costs.