Viacom To Sell Shares In Blockbuster Video

Video rentals aren’t exactly jumping off the shelves these days, but entertainment giant Viacom Inc. hopes special shares of Blockbuster Entertainment will become a hit with investors.

The parent of MTV and Paramount Pictures said Tuesday it will sell new stock that tracks the performance of its Blockbuster unit to the public and hire a new executive to run the show. Wall Street blanched, however, on the news that Blockbuster Chairman Bill Fields is leaving.

Viacom’s shares tumbled 12 percent on the day.

Viacom said that Blockbuster’s performance, measured by a unit of cash flow, will fall 15 percent to 20 percent in the first quarter. That’s partly due to Blockbuster’s move to Dallas from Fort Lauderdale, Fla., and what the company called “inferior quality” video releases.