Wattles Dumps 1.7M Blockbuster Shares

7 Jul, 2010 By: Erik Gruenwedel

Mark Wattles

Investor Mark Wattles, who infamously sold Hollywood Video to (now shuttered) Movie Gallery for $1.2 billion in 2005, has sold more than 1.7 million shares of deteriorating Blockbuster stock for a modest sum of $230,741, according to a regulatory filing.

Las Vegas-based Wattles sold the shares of Class B common stock between July 2 and July 7 for an average of 13 cents per share — a fraction of what the multimillionaire paid for the shares over the years.

The investor, who at times entertained thoughts of running for a Blockbuster board seat and operated a chain of Gallery locations after selling the brand, still owns more than 11.5 million shares of Blockbuster Class B stock and 6.2 million shares of Class A stock.

Separately, Blockbuster CEO Jim Keyes disposed of more than 245,000 shares of Class A common stock at a share price of 18 cents ($44,100) to cover tax withholding obligations. Keyes now owns more 1.8 million shares of Class A common stock.