Monday, April 14th 2008
Blockbuster Proposes $1bn Bid for Circuit City
Well-known movie rentals brand Blockbuster has made an offer of more than $1 billion to buy Circuit City, the USA's second largest consumer electronics chain. According to Blockbuster's chief executive James Keyes, the merger would create a chain that could sell portable devices and entertainment for them, similar to Apple's stores. However, Circuit City has revealed that it has suspicions about how Blockbuster intends to finance its offer, so has advised shareholders to take no action until the board has reviewed the bid. Blockbuster's is offering $6 to $8 per share for the struggling company, provided that it is allowed to examine Circuit City's financial books and outlook. This represents a total bid of $1.01bn to $1.35bn, and a premium of 25% to 67% over the share price on February 15th, the day before the initial offer was made. Circuit City shares rose $1.38 today following this news, up from $5.28, although Blockbuster shares fell 10.5%.
Source:
Yahoo!
22 Comments on Blockbuster Proposes $1bn Bid for Circuit City
I dont mind the idea of offering content with the device. I think this could work for us consumers
@ ravenas....nice beer.
I'd be suprised if Blockbuster could come up with that much money. But who knows.
Curcuit City isn't any worse than Best Buy, at least not to the consumer. Prices seem to be really competitive between the two(and that is pretty much certain thanks to both of them having a price matching guarantee). A nothing thing that most people don't realize is that you can haggle with them. If you don't like the price on that new TV, make them an offer. They usually accept reasonable offers. More than once I have recieved very good deals, simply because I haggled with them.
I think this is a bit of a desperate move by blockbuster, we'll see how it turns out though.