Blockbuster Offers to Buy Circuit City

[The Sith]

Dallas (AP)-Blockbuster Inc., which has been busy trying to fix its own movie rental business, is marking a hostile takeover bid of just $1 billion for Circuit City Stores Inc. with dreams of creating a huge chainthat would sell electronic gadgets and ren movies and games. The offer is larger than Blockbuster's entire stock market value but Chief Executive James Keyes said he has confidence his company can swing the deal and that the move has the support of one of his board members, financier Carl Icahn, who could help with financing. you can read more on the buyout of circuit city on yahoo financial page. If yoy cant find it on yahoo page click on the Link that lionel hutz provided.

[Lionel Hutz]

Dallas (AP)-Blockbuster Inc., which has been busy trying to fix its own movie rental business, is marking a hostile takeover bid of just $1 billion for Circuit City Stores Inc. with dreams of creating a huge chainthat would sell electronic gadgets and ren movies and games. The offer is larger than Blockbuster's entire stock market value but Chief Executive James Keyes said he has confidence his company can swing the deal and that the move has the support of one of his board members, financier Carl Icahn, who could help with financing. you can read more on the buyout of circuit city on yahoo financial page.I couldn't find it on the Yahoo Financial page. But a Google Search helped:

LINK (http://news.google.com/news?q=blockbuster+circuit+city&ie=UTF-8&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&sa=N&tab=wn)

[RawK_Solid]

It's surprising that they would put a bid on Circuit City. Both companies seem to be floundering and I don't think a marriage will stabilize either.

When I worked at Blockbuster about 4 years ago part-time, they had envisioned sections of certain stores to have HD equipment for sale. The biggest problem with Blockbuster is that they sell EVERYTHING at msrp and try to make most of their money on their used product. If they get into the electronic business they better be willing to have competative pricing to take on the big boys at Best Buy, Wal-Mart, & Costco. When people are willing to drop $2000 on a new toy, they usually get informed before heading to a store looking for a purchase. I know I do comparative pricing online before heading to a store to pick it up.

[Evoking1230]

oh boy

both will go under lol

and I still dont see how CC can compete with the likes of Best Buy, J&R and PC Richards & Son...no matter who buys CC out

[Beodude123]

One dying company tries to buy out another? Blockbuster isn't even worth $1 billion? Seems kind of weird they would even try and do something like that. How would a company buy out another with money they don't even have???

[vudumonkey25]

wow this is the first i've heard of this, I wonder if it does go through, will they keep the circuit city name?

[mrnagy88]

It makes sense for blockbuster if you ask me... they are losing to bigger conglomerates like Rogers etc. and so they are going into a business that is more "stable" kind of like how AOL bought time warner...

This will probably save blockbuster from bankruptcy, but basically it will be CC covering their loses :-p

[Morganator]

wow this is the first i've heard of this, I wonder if it does go through, will they keep the circuit city name?

Welcome to Circuit-Buster! We bust out the electronics and short out your circuits.:p On another note though, it could be named City Block.

Anyway, interesting article regardless.