Big Entertainment to Buy Hollywood Online

Big Entertainment Inc., which sells movie and TV memorabilia over the Internet, said it agreed to buy Times Mirror Co.’s Hollywood Online Inc., which runs a news site about film, for $31 million in stock, to broaden its product line and attract more users. Boca Raton, Fla.-based Big Entertainment plans to combine its Web site, which sells merchandise tied to celebrities and entertainment, with Hollywood Online’s site, which offers news, including Los Angeles Times articles, video clips and movie screening times for about 75% of U.S. theaters. Times Mirror publishes the Los Angeles Times and other newspapers. Big Entertainment hopes to lure movie fans with a link to The Times’ entertainment coverage. Newspaper publisher Gannett Co. owns about 10% of Big Entertainment. Times Mirror could end up owning as much as 19.9% of Big Entertainment’s voting shares. The number of shares that Big will pay Times Mirror will be based on Big Entertainment’s average price over 30 days, within a range of about $8.44 to $17.52. Should Times Mirror’s stake exceed 19.9%, it will get up to $6 million in nonvoting stock. Times Mirror also will name a director to Big Entertainment’s board. Big Entertainment shares rose 6 cents to close at $14.50 on the Nasdaq Small-Cap Market; Times Mirror shares fell $1.56 to close at $58.25 on the New York Stock Exchange.