Blockbuster Proposes $1bn Bid for Circuit City

[Jimmy 2004]

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%.

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[asb2106]

WOW, first off, I didnt even know circuit city was failing!

I dont mind the idea of offering content with the device. I think this could work for us consumers

 

[Jimmy 2004]

Thanks to spacejunky for sending this in.

 

[patton45]

i hope circuit city goes under they are one of the worst run companies in the electronic and appliance field. their prices tend to be 10% then their competitors or more i found a 160gb hd there for 150$. this company has had had money and managment issues for the last 5 years. I would rather seem them under new management or fold altogehter

 

[Ravenas]

Anyone who has ever worked at Blockbuster knew this was coming. Blockbuster is pushing big to become a retailer, mainly because 10 years from now in store movie rentals are going to the dumps.

 

[sneekypeet]

yup the CC in the Toledo Ohio area have been closing up shop.

@ ravenas....nice beer.

 

[mab1376]

I've worked at the on is Bay Shore, NY (Long Island) for a year now and the way they run the company is retarded. I hope they do get bought out so it will be run by someone with half a brain...

 

[Darkrealms]

They didn't start going down before they started their computer tech support I bet, lol.
I'd be suprised if Blockbuster could come up with that much money. But who knows.

 

[newtekie1]

Blockbuster seems to be doing far worse than Curcuit City. In the past year, all but one of the Blockbusters in my area have closed(3 total closing). The Curcuit Citys in my area seem to be doing very well, though with the internet available it seems times for business with actual store fronts is getting harder and harder.

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.

 

[yogurt_21]

Blockbuster seems to be doing far worse than Curcuit City.

You can thank netflix for that, blockbuster took too long to go online. this leaves thaem behind in that game, which is where evrything is going. not to mention walgreens and albertsons offereing a dollar a night rental for any movie you want.

I think this is a bit of a desperate move by blockbuster, we'll see how it turns out though.

 

[WarEagleAU]

You know what I liked about CIRCUIT City? It was there commercials in the mid to late 90s. That little kid coming into the store and showing a circular with a lower price. Then the nice old man gave him the difference and it was just heart warming. That was a good campaign for them and did very well for their sales. Fast forward about 8 years and they pretty much leveled off of advertising. Best Buy came in and pretty much shot them in the butt cheek they do have some hell of a deal deals going on but the store layout is quirky and I just dont liket hat.

 

[AddSub]

Circuit City has revealed that it has suspicions about how Blockbuster intends to finance its offer

Suspicions? Me too. Blockbuster is not exactly on solid financial ground. I would have thought it would be the other way around. CC buying out BB.

 

[Snake05]

I worked at CC this past summer, and even I didn't know they were failing....

 

[Dr. Spankenstein]

Ours closed more than 8 months ago.

 

[ktr]

CC is nothing but fail. Worst customer service, and I hate those restocking fees.

 

[Atnevon]

Suspicions? Me too. Blockbuster is not exactly on solid financial ground. I would have thought it would be the other way around. CC buying out BB.

Who is these days besides Shell and Exxon?

 

[timta2]

I can't believe that these two disasters could possibly get together. The last few times I have been to Circuit City and Blockbuster there have been few customers. The last two times I went to Blockbuster I was the only one in the store. Anybody taking bets on how long they will last if this happens?

 

[imperialreign]

Why does the term "epic fail" scream at me from this news?

 

[Darkrealms]

You know what I liked about CIRCUIT City? It was there commercials in the mid to late 90s. That little kid coming into the store and showing a circular with a lower price. Then the nice old man gave him the difference and it was just heart warming. That was a good campaign for them and did very well for their sales. Fast forward about 8 years and they pretty much leveled off of advertising. Best Buy came in and pretty much shot them in the butt cheek they do have some hell of a deal deals going on but the store layout is quirky and I just dont liket hat.

I'll agree with you till about 2003 then I started noticing Best Buys prices getting pretty ridiculous as well. I think BB thought they could jack everything because they had everyone’s attention already :/

 

[jbunch07]

this is all they ever talked about when i worked at cc this past summer...i would always here talk about going out of business or getting takin over...im not the least bit surprised to hear this but i didn't really think that blockbuster would try and buy them out?

 

[mab1376]

Ours closed more than 8 months ago.

they closed the one in Commack, NY near me, but it was hidden behind trees and across the street from a best buy... it was destined to fail.

 

[cdawall]

CC may suck but they had some really nice online sales

 

[asb2106]

CC may suck but they had some really nice online sales

+1, I have bought quite a few things from there. I have found random parts there cheaper than they were at random online retailers. Like HD's and even RAM once!!