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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 2, 1994
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BLOCKBUSTER ENTERTAINMENT CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware
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(State of other jurisdiction of incorporation)
0-12700 75-1849418
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(Commission (IRS Employer
File Number) Identification No.)
One Blockbuster Plaza
Ft. Lauderdale, FL 33301
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code (305)832-3000
N.A.
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On September 2, 1994, Blockbuster Entertainment Corporation (the
"Registrant") consummated a transaction with Discovery Zone, Inc. ("Discovery
Zone") in which Discovery Zone acquired all of the franchised Discovery Zone
facilities and territories owned by the Registrant in exchange for 4,624,597
shares of Discovery Zone's common stock. Separately, the Registrant exercised
an amended option from the former partners of DKB Investments, L.P. pursuant
to which the Registrant increased its ownership of Discovery Zone's common
stock to approximately 49.9% through the acquisition of 12,442,007 shares of
Discovery Zone's common stock in exchange for 6,226,986 shares of the
Registrant's common stock. In addition, the Registrant acquired a
supplemental option to increase its ownership of Discovery Zone to
approximately 52.8% under certain circumstances.
The descriptions herein of the foregoing transactions are qualified in
their entirety by reference to the Press Release, dated September 6, 1994,
attached hereto as Exhibit 99 and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
The Exhibits to this Report are listed in the Exhibit Index set forth
elsewhere herein.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BLOCKBUSTER ENTERTAINMENT CORPORATION
By: /s/ Thomas W. Hawkins
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Thomas W. Hawkins
Senior Vice President, General Counsel and
Secretary
Date: September 19, 1994
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BLOCKBUSTER ENTERTAINMENT CORPORATION
EXHIBIT INDEX
Number and Sequential
Description of Exhibit Page Number
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1. None
2. None
4. None
16. None
17. None
20. None
23. None
24. None
27. None
99. Press Release, dated September 6, 1994.
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Exhibit 99
[LOGO]
DISCOVERY ZONE CLOSES LEAPS & BOUNDS MERGER;
BLOCKBUSTER COMPLETES DZ EQUITY PURCHASE
CHICAGO, Sept. 6 /PRNewswire/ -- Discovery Zone, Inc. (Nasdaq: ZONE)
today announced that it has completed the acquisition of Leaps & Bounds, Inc.
from McDonald's Corporation (NYSE: MCD), and the acquisition of all of the
Discovery Zone FunCenters and territories formerly owned by Blockbuster
Entertainment Corporation (NYSE: BV). Discovery Zone also announced that
Blockbuster has consummated its acquisition of an approximately 50 percent
equity interest in Discovery Zone, Inc.
Discovery Zone acquired the 49 Leaps & Bounds children's indoor
entertainment and fitness facilities by issuing 5,500,000 shares of its
common stock to McDonald's. Discovery Zone acquired the 60 Blockbuster-
franchised FunCenters (59 in the U.S. and one in Canada), and its franchised
territories, through the issuance of approximately 4,625,000 shares of its
common stock to Blockbuster.
Blockbuster increased its ownership of Discovery Zone stock from 20
percent to approximately 50 percent, acquiring most of its additional shares
of Discovery Zone from the former partners of DKB Investments, L.P., which
had been the Company's largest stockholder.
Donald F. Flynn, Discovery Zone Chairman and CEO, said, "It was just a
couple of years ago (July, 1992) that we set out to become the world's
playground by building and seizing leadership in the children's entertainment
and fitness market. Now, with the completion of our merger with Leaps &
Bounds, McDonald's involvement, and the strong ties we have to our partner at
Blockbuster, we're ready to charge ahead.
"We have room to grow here in the U.S. -- we're doing well in the U.K.
and Canada -- we will open our first FunCenter in Mexico this fall -- and we
recently announced ventures to open Discovery Zone FunCenters in France
and Spain. Also this fall, we'll welcome our 25-millionth Discovery
Zone guest, and our focus is just where it belongs -- on delivering the
highest quality, most fun experience possible to our guests around the world."
- 0 - 9/6/94
/CONTACT: Robert D. Mitchum, Senior Vice President and Chief Financial
Officer, of Discovery Zone, Inc., 312-616-3800, or Gregory K. Fairbanks,
Senior Vice President and Chief Financial Officer, of Blockbuster
Entertainment Corporation, 305-832-3000/
(ZONE MCD BV)
