Image Entertainment Denies Acquisition Rumor

Image Entertainment Inc., a Chatsworth-based laserdisc distributor, has denied published reports that it has reached an agreement to acquire another company.

Responding to a story in the Hollywood Reporter, Image said it “has explored, and continues to explore, acquisition opportunities,” but that no deal had been reached.

The article cited unnamed sources in reporting that Image, which is 33%-owned by billionaire John Kluge, had agreed to buy the New Jersey compact disc distributor Essex Entertainment for $32 million. It pointed to the fading laserdisc market and impending competition from digital videodiscs as the motivation behind Image’s desire to move into other businesses.