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Monday, April 14, 2008 | 1:21pm
Business Matters: Blockbuster Attempts to Buy Circuit City
This could be Blockbuster! (Pun Intended)
Blockbuster whose known for its movie and game rental capabilities, has proposed an unsolicited bid to buy electronic store giant Circuit City for $1 billion in cash. At this price Circuit City would be purchased for 54% more than it is worth. Blockbuster is trying to make power moves and although negotiations haven’t started yet Blockbuster has already stated that they are willing to go as high as $8 a share to purchase the retail chain, more than double their current stock price. Blockbuster was quick to point out that theywanted to “uniquely positioned to capitalize on the growing convergence of media content and electronic devices.” CEO and Chairman of Blockbuster Jim Keyes has this to add
“Our proposal offers Circuit City a significant premium to its existing stock price and creates a game-changing retail concept with a sustainable competitive advantage….. the combination will result in a compelling consumer proposition that will drive significant revenue and margin enhancements as well as cost synergies.” (GAME BLOUSES)!
FILED IN Business & Marketing, Entertainment, News
