RICHMOND, VA-Circuit City’s management is letting Blockbuster Inc., along with the video chain’s largest shareholder and renowned billionaire financier Carl Icahn, conduct due diligence in order to acquire the locally-based electronics retailer. Circuit City first made a potential Blockbuster offer public last month.

“Let me be clear that our decision to allow Blockbuster and Carl Icahn to conduct due diligence should not be taken as an indication that the board has completed its review of the Blockbuster proposal, that the board has taken a position on the company’s value or that it has settled upon a particular strategic course of action,” said Philip Schoonover, Circuit City’s chairman, president and chief executive officer.

Blockbuster and Icahn’s proposal includes a condition, in which, if the former is not able to finance a deal, Ichan and his affiliates could step in and make the acquisition of Circuit City. Ichan, who Forbes magazine listed last year as the 42nd-richest person in the world with a net worth of $13 billion, is chairman of New York City-based Icahn Enterprises, which invests in real estate, home fashion and metals.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?


© 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.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.