Dothan, AL – The Alabama-based rental chain Movie Gallery reached a deal last week to purchase another rental chain, Hollywood Entertainment. That would merge the number three and number two movie rental businesses in the country. But, that hasn't stopped Blockbuster, the nation's number one rental chain, from staying interested in Hollywood Entertainment. Blockbuster's announcement may mean a bidding war is on the way. Blockbuster's chairman and chief executive says he's disappointed Hollywood accepted Movie Gallery's offer without allowing Blockbuster to counter bid.