Hollywood Entertainment Revamps Online

Hollywood Entertainment Corp., owner of Hollywood Video, the second-largest U.S. video store chain, will announce today that it has reorganized its online operations and is looking for new financing opportunities, including a possible public stock offering.

Hollywood Entertainment has created Internet Hollywood as a unit to operate and expand its online businesses, which include the leading Internet video seller Reel.com. As part of the reorganization, Reel.com Chief Executive Julie Wainwright has been replaced by Jeff Jordan, who was executive vice president and chief finance officer but will now be president of Internet Hollywood.

The reorganization positions the company’s Internet ventures for a spinoff as it looks for additional capital to finance growth.

“The most obvious source of new funding and the one that people want to focus on is an IPO--and it’s certainly something that we’re considering,� said Mark Wattles, chief executive of the company, which acquired Reel.com in October.