April 14, 2008 (WiredPRNews.com) — As if Blockbuster doesn’t have a master grip on the entertainment world, both in media and online ventures, the Associated Press reports that Blockbuster has submitted a $1.35 billion bid to take over Circuit City Stores Inc. The buyout would give Blockbuster the gateway to sell electronic gadgets in addition to movie rentals and games.
“The offer is larger than Blockbuster’s entire stock market value, but Chief Executive James Keyes said he was confident 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.” Blockbuster’s acquisition would create a retain chain made up of 9,300 stores nationwide. In a juxtaposition, the Circuit Cities stores would offer customers access to a movie rental location and Blockbuster stores would offer a limited inventory of gadgets.
Even though Circuit City spokespeople doubt Blockbuster could finance such an investment, Blockbuster may be biting off more baggage than it can chew since Best Buy Inc. began giving Circuit City a run for their money.
“Blockbuster said it requested a response by Feb. 21 but that Circuit City had failed to provide the financial information that the Dallas-based company needed to make a definitive takeover proposal. Blockbuster is asking for information including Circuit City’s long-term corporate strategic plan and outlook, detailed store-level performance figures, and current inventory aging schedules. ”
Dallas Staff Reporter