Blockbuster Bid Possible

Hollywood Entertainment Corp. founder Mark Wattles, whose effort to take the company private failed last year, said he was seeking backers to help buy his onetime competitor Blockbuster Inc.

“I am in active discussions with potential buyers,” said Wattles, who bought about 1 million shares in Dallas-based Blockbuster, the largest U.S. video rental chain, in the last month.

Wattles’ interest in Blockbuster may increase pressure on Chief Executive John Antioco, who last week lost his board seat to Carl Icahn, Blockbuster’s largest shareholder. Although Blockbuster later enlarged the board to let Antioco remain, Icahn’s slate won three seats on the eight-member board. Wattles may find support from Icahn, who favors selling Blockbuster.

Icahn didn’t return calls seeking comment. Blockbuster spokeswoman Karen Raskopf declined to comment on Wattles.

Shares of Blockbuster fell 2 cents to $10.13 on the New York Stock Exchange.

Also Monday, Blockbuster said its board approved raises of 5% to 18% for six managers last week, one day before shareholders ousted three directors partly over executive compensation.

*

Associated Press and Bloomberg News were used in compiling this report.