Blockbuster Inc., the nation's top video rental chain, has ended its hostile takeover bid to buy Hollywood Entertainment Corporation, the number two rental chain in the nation.

The offer of $14.50 per share had expired at midnight Thursday and Friday, Blockbuster announced that it would not be extended. The biggest reason was a failure to get regulatory clearance for the transaction.

'Given the current circumstances, in our judgment it is not in Blockbuster's best interest to continue to pursue the acquisition,' said a statement from John Antioco, Blockbuster's CEO.

That leaves the field open in the bid to buy Hollywood Entertainment. Movie Gallery Inc., the nation's third leading video rental chain, has an offer of $13.25 per share. The Movie Gallery bid is all cash while the Blockbuster bid was $11.50 cash and $3.00 in stock.

Hollywood Entertainment had preferred Movie Gallery's bid and now may get its wish.