Blockbuster Looks At Circuit City's Books; Ditches Acquisition Offer

from the no-real-surprise dept

We were one of a very small number of people who actually saw some logic behind Blockbuster bidding for Circuit City -- though, it seemed unlikely that Blockbuster viewed the purchase in the same way we did. Most people assumed (probably correctly) that Blockbuster didn't really have much of a plan at all, other than to merge the two struggling companies and have an even bigger mess on their hands. Blockbuster has now withdrawn the offer to buy Circuit City, gamely claiming that it has to do with "market conditions" and a better understanding of just how awful Circuit City's books appear to be. That's press release talk. What's more likely is that Blockbuster realized that everyone was right: it would screw up the merger and make a bad situation worse.

Filed Under: mergers, retail
Companies: blockbuster, circuit city


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  1. identicon
    Anonymous Coward, 2 Jul 2008 @ 9:05pm

    The "logic" of BB buying out CC went out the door about two months ago when just maintaining what you have (even struggling) is more important to stock holders than taking a chance. The economic market is in poor shape and stock holders are demanding conservative decisions.

    More than anything else, this just seems like a scared reaction to the current market instead of actually trying to build a lasting buisness.

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