New Chief For Blockbuster
Blockbuster shares jumped 3.5 percent Monday on news that former 7-Eleven chief James Keyes had been named to succeed embattled Chairman/CEO John F. Antioco. Analysts appeared to be taking a wait-and-see position before altering their recommendations for the stock. Standard & Poor's called Keyes an interesting choice and referred to his success in applying new technology to boost the convenience store chain's revenue when he took over. But it said that it wanted to hear more about his strategy for Blockbuster. In an interview with Daily Variety, Keyes said he saw "a huge opportunity in this transformative process" as videos begin to be distributed through online channels."Blockbuster is a race horse in dinosaur's clothing," Keyes said. Meanwhile, Movie Gallery, the No. 2 movie rental company, said Monday that it had been unable to meet certain credit payments during the second quarter and is negotiating with lenders. Shares in the company plummeted from about $2.00 earlier in the day to $.85 in after-hours trading.