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Blockbuster offers $1B for Circuit City

Posted by lozenp on April 14, 2008

Blockbuster today made public its offer to purchase the little sister of the consumer electronics industry, Circuit City, for $1billion. Blockbuster made the original, unsolicited offer on Feb. 17, but has not gotten a response from Circuit City since that time and has been unable to move forward. Making the offer public seems to be a move aimed at putting pressure on Circuit City from its shareholders, who are reeling from a stock price that has fallen from $19 last year to a low of $3.44 last month.

It’s an interesting move from Blockbuster, who has had struggles of it’s own recently trying to keep up with the likes of Netflix. Blockbuster’s closed more than 250 stores last year alone. Add this to last week’s news that Blockbuster was looking to announce it’s own set-top box and you have a company that appears to be trying anything to shake things up. At least now it would have a place to sell that shiny new STB.

Posted in Blockbuster, Circuit City, Netflix | 2 Comments »