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.
View: The full story @ PCWorld
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.
View: The full story @ PCWorld
Maybe they have a vault somewhere loaded with gold bars from all the late-fees they'd charge in the 1990s.
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).
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.
lol a double negative
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