Blockbuster gobbles up Xtra assets

INSERT the cassette into the VCR . . . select video channel. .. zap the play button. .. fast forward through the trailers. Hope this tape is entertaining than the dross you rented for £2.50 last weekend. Still the blurb on the cover looks interesting. This recent release has at least local interest, a steamy business drama set in contemporary Ireland. Our young hero Richard (not Eddie) Murphy, a humble motorbike courier harbouring wheeler-dealer aspirations, foresees demand for a home entertainment service that could provide the basis of a profitable business

His initiative pays off. From modest beginnings the fledgling company prospers, the business eventually floating on the stock market. There follows a white-knuckle ride of astonishing growth, a surging share price and heavy borrowings which grinds to a halt within a year, the venture saddled with £18 million losses and debts of £20 million. Boom turns to bust. A business suited fifth cavalry rides in to pick up the pieces, saddle bags laden with borrowed cash. Sadly our hero makes an early exit but, like Arnie, he'll be back.

The new kids on the investment block soon run into trouble, riding off into the setting sun of receivership. Enter a court-appointed examiner who sorts out the mess, selling the business to two venture capital groups. Recovery is slow but steady earnings increase, confidence returns. Then, in yet another twist, a giant American corporation pounces to gobble up the enriched embryo. Wow! Somewhat lacking in sex and violence but a rattling good yarn so far. A sort of Wall Street meets Anglesea Street.

This of course is the abridged storyline of Irish video rental chain Xtra-vision which has just been acquired by Blockbuster, the US video rental giant. Although no price has been disclosed it is probable that Blockbuster paid around £20 million for the chain of 225 outlets in the Republic and Northern Ireland. Xtra-vision, which employs 1,000, now has sales of £25 million and produces profits of about £3.7 million. Given its high brand profile of Xtra-vision the name may well be retained.

Blockbuster, a division of US entertainment group Viacom, has over 5,300 outlets worldwide and has around 21 per cent of the British market.

The original "Xtra-vision" was superseded by "Xtra-vision II" then along came "Xtra-vision - The New Generation ". What dramas are yet to unfold in this cliff-hanger? For now hit the pause button.