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?

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