Movie Gallery Buys MovieBeam

Alabama-based Movie Gallery, a video rental firm that owns the Movie Gallery, Hollywood Video and Game Crazy video rental chains, said Wednesday that it has purchased all of the assets, technology, network operations, and customers of Burbank-based MovieBeam. According to Movie Gallery, initial acquisition cost and any ongoing development expenses for MovieBeam, will be less than $10 million in 2007. MovieBeam was developing a video-on-demand movie service based on broadband broadcasts. MovieBeam had raised $52.5M in funding from Cisco, Intel, Mayfield, Norwest Venture Partners, and VantagePoint last year.