DALLAS, Feb. 10 (UPI) -- Viacom Inc. announced Tuesday it will spin off its holdings in video rental giant Blockbuster Inc.
Blockbuster Chairman and CEO John Antioco said in a statement the move would enable his company to more effectively pursue its strategy and "significant avenues for expansion."
He said: "We believe Blockbuster will compete very effectively as an independent company.... With our brand, our cash flow and our growth opportunities, we are convinced that the prospects for our business are exceptionally strong."
The announcement ended months of speculation on whether the media company would sell its 81 percent of the financially-strapped, Dallas-based video chain or spin it off as a separate company.
Viacom said the spinoff would involve a plan in which Viacom would offer its shareholders an option to trade their stock for Blockbuster shares in an as-of-yet undetermined ratio.
Blockbuster said it would consider issuing shareholders a special dividend, subject to financing.
