It seems that Circuit City's management was just as surprised aswe were about a proposed $1.3-billion offer to acquire the company by Blockbuster.We wereweighing a possible deal last week after reading aBusiness Week article but didn't expect this."Thecombination...will result in an $18 billion retail enterpriseuniquely positioned for the convergence of media content andelectronic devices," Blockbuster chairman and CEO Jim Keyes said ina letter to Circuit City. The two companies would create a networkof nearly 10,000 stores.Does this proposal make sense, and could itcreate a platform that would compete with Best Buy, discounters andonline merchants like Netflix? Or is it reminiscent of othermergersover the last few years?

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.