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