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Blockbuster Offers To Buy Circuit City

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Blockbuster Offers To Buy Circuit City

Postby Ian on Mon Apr 14, 2008 3:29 pm

If I was Circuit City, I'd take the offer. I don't think they'll last another year otherwise.

http://blockbuster.mediaroom.com/index. ... s&item=760

Blockbuster Inc. (NYSE: BBI) today announced that it has offered to acquire Circuit City Stores, Inc. (NYSE: CC) for at least $6.00 per share in cash, subject to due diligence. The offer was made in a letter sent to Circuit City Chairman and Chief Executive Officer Philip Schoonover on February 17th on behalf of the Blockbuster Board of Directors, which fully supports the offer. Unfortunately, to date, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive proposal. Blockbuster is making its proposal public because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company. In addition, as Blockbuster has other strategic opportunities, its offer is conditioned upon timely commencement of the due diligence process.

Blockbuster noted the combination of the two companies would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices. The transaction would allow both companies to benefit from the revenue growth generated by their complementary products, while the resulting synergies would substantially improve consolidated financial performance, thereby increasing shareholder value.
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Re: Blockbuster Offers To Buy Circuit City

Postby CowboySlim on Mon Apr 14, 2008 6:25 pm

Ian wrote:If I was Circuit City, I'd take the offer. I don't think they'll last another year otherwise.

Was there ever any doubt? Ever since Hox went to work at Best Buy,.............. :P
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Postby SithTracy on Mon Apr 14, 2008 6:39 pm

Not sure about that move... Either way I think they are both sunk. I have not rented at Blockbuster for a long time and I never buy anything from either Circuit City or Best Buy... I do go in for hands on once in a while and then purchase online for a much better deal.

Blockbuster better hope that set top box impresses (I have my doubts), or they will both sink... FAST!
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Postby Wesociety on Thu Apr 17, 2008 1:31 pm

Everything about Bestbuy just seems better, their sales, their setup, selection, etc. That's probably why Bestbuy is making a profit and Circuit City is posting losses. From what I understand, Blockbuster isn't making much profit currently either, so it surprises me that they are looking to buy another sinking ship. But who knows, if this does go through we could have an interesting Blockbuster City on our hands. :-)
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