Blockbuster Bids $1 Billion+ for Circuit City

Blockbuster Bids $1 Billion+ for Circuit City (http://ap.google.com/article/ALeqM5g1fYqj5X5RG6UrI6kk9 jeJfOg7jwD901J4G00)

Front Page Article (http://www.tribalwar.com/news/5381-Blockbuster-Bids-Billion-for-Circuit-City.html)

Movie rental chain operator Blockbuster is taking an unsolicited $1 billion-plus bid for Circuit City Stores directly to shareholders, saying the consumer electronics chain is dragging its feet on previous offers.

Dallas-based Blockbuster Inc. said early Monday said it has been in talks with Richmond, Va.-based Circuit City Stores Inc. for months regarding a potential acquisition, and on Feb. 17th sent a letter to Circuit City Chairman and Chief Executive Philip Schoonover offering at least $6 per share in cash for the company.

Blockbuster says that, to date, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive takeover proposal.

I love Blockbuster. I always rent my ovies from there.

zomg

I worked at Blockbuster in high school. Not a bad job in HS if you like to watch a lot of movies, which I did.

This is horrible news. If blockbuster buys Circuit City I'll have to take my business elsewhere. Best Buy already lost my business so now I'll have nowhere to go :( :(

TribalBob will be regional VP of both Blockbuster AND Circuit City now

This is horrible news. If blockbuster buys Circuit City I'll have to take my business elsewhere. Best Buy already lost my business so now I'll have nowhere to go :( :(You could put on a tuxedo and go to Wal-Mart.

rofl why the hell would they do this....CC is a fucking shit hole. I use to work there when i was in college. their infrastructure needs so much fucking work it's ridiculous.

rofl why the hell would they do this....CC is a fucking shit hole. I use to work there when i was in college. their infrastructure needs so much fucking work it's ridiculous.

well video rental stores are dying pretty quickly, they have to try something I guess :shrug:

Only $1 billion?

If they wanted to change their business model then why would they do it with circuit city? CC has been on the slow decline for the last 5 years(the same reason that hifi-buys went out of business) because their business model is failing due to intense competition from other businesses like best buys and Comp USA. The only difference being that hifi buys was a niche and Comp USA wasn't focused enough. Both of those businesses allowed their pricing to drive away customers. And now both are gone.

This move makes no sense and I wouldn't be surprised if Blockbuster AND Circuit City fail within the next few years.