Posted on 04/14/2008 2:18:14 AM PDT by shove_it
Blockbuster Inc, the No. 1 U.S. movie rental chain, said on Monday it has offered to buy electronics retailer Circuit City Stores Inc in an all-cash offer in the range of $6 per share to $8 per share
Blockbuster said it made the offer in a February 17 letter to Circuit City's Chief Executive Philip Schoonover on behalf of Blockbuster's board, but that Circuit City had so far failed to provide due diligence.
Blockbuster said it was making its proposal public, "because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company." The combination would result in an $18 billion global retail company, Blockbuster said.
Circuit City could not be reached immediately for comment.
As of February 29, Circuit City had roughly 166.5 million diluted shares outstanding, according to the company's quarterly earnings release last week. Its shares closed at $3.90 on the New York Stock Exchange on Friday.
Good, it will make a bigger mess when it goes broke.
When I go into Circuit City, I always find that I know more about the products than the sales staff. That irritates me, because I usually have questions they can’t answer. They ought to go broke.
Normally the racks are full in there but yesterday, empty dvd racks and missing displays were store wide. It didn't look like a store reset, it felt like a morgue.
The only reason I went in was to redeem a gift card, I had heard they were in trouble and thought I'd better use it before I lost it. I really haven't beem there much since they unloaded the experienced staff.
And while they’re at it, they should find out those who were responsible for the decision to lay off all their experienced staff, and fire them. No severance package, no “golden parachute”, off to the street with you.
I didn’t think anyone was dumb enough to buy the rapidly sinking Circuit City ship...
But Blockbuster, another rapidly sinking ship, has apparently decided that they can make a go of it and successfully sail off if they lash two rapidly sinking ships together for more buoyancy.
Analogies aside, it could work — combining “software” and hardware. One infrastructure — retails outlets, sales staff, warehouses, trucks, etc.
Good. Get all the stores I hate to shop at to buy each other. That way I can ignore them all at the same time.
Yeah, throw all those employees out on the street!
If a company digs it’s own grave by abusing the customer, who am I to stand in the way?
Circuit City, like Sharper Image, Linens & Things, CompUSA etc. got hit hard by Wal-Mart and a sharp decline in consumer spending.
At the low end, electronics are commodities — one cheap DVD player is pretty much as good as the next cheap DVD player.
However, the recent trend in established specialty stores going out is bad news. Tens of thousands of jobs will be lost.
LLS
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