Blockbuster Offers up to $1.33B for Circuit City

Blockbuster has offered to buy Circuit City Stores for as much as US$1.33 billion in a deal aimed at taking advantage of the global trend of putting media content on electronic devices, the U.S. movie rental giant said Monday.

Blockbuster has offered $6 to $8 per share in cash for Circuit City, depending on the results of a check of Circuit City's books. The per share offer presents a huge markup from Circuit City's closing stock price on Friday of $3.90, and values the company at between $990 million and $1.33 billion, based on the number of outstanding shares of stock Circuit City reported in its most recent quarterly earnings. Merging with Circuit City would create an $18 billion global retail company and substantially improve the financial performance of the two companies, Blockbuster said.

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Seems like the "trend" now is to buy out companies to "improve performance". Companies need to start looking at their own problems internally, rather than externally.

(C_Guy said @ #3)
Seems like the "trend" now is to buy out companies to "improve performance". Companies need to start looking at their own problems internally, rather than externally.

This was already being done, for several years. This isn't a new problem.

Problem is, BB's entire basis is/was on a style of business that is disappearing - thus the move into new markets (and this is a frequently used way to do that).

(Kirkburn said @ #3.1)

This was already being done, for several years. This isn't a new problem.

Problem is, BB's entire basis is/was on a style of business that is disappearing - thus the move into new markets (and this is a frequently used way to do that).

Where BB is going to run into issues is that CC is outside of their core competencies. Just because a farmer sells milk does not mean he can run a grocery store.

Yeah, I thought any Blockbuster-related news would be that it was going out of business...

Maybe they have a vault somewhere loaded with gold bars from all the late-fees they'd charge in the 1990s.