Digest: Video closings; Extra Value
Video rental firm Movie Gallery said Tuesday that it will close about 520 underperforming Movie Gallery and Hollywood Video stores to reduce costs and preserve cash. The company did not release how many employees will be laid off. The move will allow the company to focus its attention on the roughly 4,000 surviving stores, CEO Joe Malugen said. Shares rose 14% to 58 cents, making Movie Gallery Monday's leading gainer on The Hollywood Reporter Showbiz 50 stock index.
Shares of online advertising company ValueClick jumped for a second day Tuesday, with analysts citing speculation that the company could be purchased by AOL. ValueClick shares rose 13% to $24.85 after climbing 7.4% on Monday. The company is one of few publicly traded companies in its sector that hasn't yet been gobbled up by a major technology company. In the past year, Google, Yahoo and Microsoft -- among others -- have acquired various online ad companies.
Online advertising technology firm NebuAd said Tuesday that it has closed a second round of funding, bringing the total investment in the company to more than $30 million. NebuAd's technology anonymously observes consumer Internet activity to help advertisers target users.