In Feburary, Blockbuster offered to acquire Circuit City but in essence has been ignored as CC failed to provide the due diligence necessary to make a definitive proposal. To force the issue, Blockbuster has made the $1B proposal public. Blockbuster seems to have been diversifying beyond “just a movie rental company” to transform themselves into a retail company for media content and electronic devices - both of which have been converging…
I’m not sure how their respective shareholders feel about this sort of business combination, but to me it seems like two companies dying a slow death joining forces to die together faster. Blockbuster is losing out to Netflix and soon to online movie streaming while Circuit City is losing out to Best Buy, Wal-mart and the online retailers. Together how will this be any better? I’ll tell you two companies that are jumping for joy about this news - Netflix and Best Buy!
Does Blockbuster City sound like a logical “store” to you?
Check out more of Brent?s reflections on tech, gadgets, software and media at Brent Evans Geek Tonic.
