Blockbuster makes offer to buy Circuit City
Blockbuster announced today that it has made an unsolicited bid to acquire Circuit City on February 17th.
The all cash offer, based on their review of publicly available info, is for $6 – $8 per share or more than 50% the stocks current value.
Blockbuster’s vision of the “new” Blockbuster sees a combined Blockbuster and Circuit City would “result in an $18 billion retail enterprise uniquely positioned for the convergence of media content and electronic devices. We would seek to differentiate products in both Blockbuster and Circuit City stores by offering exclusive content and content-enabled devices. Both companies would benefit from complementary products, marketing, management strengths, technology and distribution and the resulting synergies would significantly improve consolidated financial performance.”
Circuit City apparently has not provided the requested “due diligence” that the deal would need to move forward, so Blockbuster making this news public now is a way of getting Circuit City shareholders involved to help push things.
Check out the full press release including the full letter from Blockbuster CEO Jim Keyes to Circuity City CEO Phil Schoonover here if you’re so inclined.