In a move that no one expected, or can even understand, Blockbuster has offered a cash buyout of Circuit City… Wait… What?!
Zac Bissonnette of BloggingStocks puts it quite well:
This deal would be the absolute epitome of “two drunken sailors trying to hold each other up.” Both of these companies have experienced precipitous declines in recent years, reporting losses as industry changes and more nimble competitors take their market share.
Blockbuster is said to be offering a cash buyout between $6 and $8 a share. Shares of Circuit City are currently up 28.46%, or $1.11 to $5.01. Shares in Blockbuster are down 13.74%, or $0.43 to $2.70
Now I don’t mind Blockbuster, but I hate Circuit City.
In other news, Google announced its plans to acquire Payless Shoes, citing the pivotal shift in market strategy Blockbuster is forging with its attempted acquisition of Circuit City as the driving factor behind the deal.