Richard Branson is abandoning yet another business in his quest to devote his all to his airline, and the multimedia games business Virgin Interactive Entertainment Plc is going to Spelling Entertainment Group Inc via Blockbuster Entertainment Corp. The latter will acquire 55% from Richard Branson’s Family Trusts and other shareholders, bringing its stake to about 75%; Virgin shareholders will retain 10%, which may also be acquired by Blockbuster later. And Spelling has signed a non-binding letter of intent with Blockbuster to acquire Blockbuster’s entire interest in Virgin Interactive, including the new interest, at Blockbuster’s original cost. Spelling would pay for the stake by issuing new shares worth about $165m to Blockbuster Entertainment.
