Blockbuster gives up on Circuit City
Tiny URL: http://tinyurl.com/57fb6l
Blockbuster withdrew its February offer of $1 billion bid for troubled consumer electronics chain Circuit City on Tuesday. Blockbuster went public with its offer after initial overtures were ignored by Circuit City’s board. Blockbuster CEO James Keyes said in a statement -
“Based on market conditions and the completion of our initial due diligence process,
we have determined that it is not in the best interest of Blockbuster’s
shareholders to proceed with an acquisition of Circuit City. We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and
electronic devices together under one brand. We will pursue this
strategy through our Blockbuster stores as a way to diversify the
business and better serve the entertainment retail segment.”
Blockbuster has more than 7,700 stores worldwide and it lost $85 million last year on revenue of $5.54 billion.
Circuit City has about 700 stores in US and 775 stores in Canada. It lost $320 million on sales of $11.7 billion.
