Blockbuster has made an unsolicited bid for Circuit City. Circuit City has acknowledged receipt of the proposal and has advised its shareholders to essentially relax and stay tuned while they evaluate the documents submitted. This begs a few questions: Circuit City has fundamental "questions" of the proposal, but most seem to focus on the viability of the deal and Blockbuster's ability to purchase the chain.
Discuss "Blockbuster to Buy Circuit City?" here. Read the article.
As always, the success or failure of the union depends on the quality of management. On the surface, however, it makes some sense to me. Blockbuster needs to diversify away from its disintegrating core business and Circuit City needs new management to become a viable competitor in the marketplace. This acquisition does both of these things. Will it make the two stronger? Only time and management talent will tell.
As a small business entrepreneur, I can tell you that I have a fairly jaded opinion of most big business managements. The people who get into the highest levels of management in large companies are those with the right politics, not necessarily the right ideas. In some cases, the lower management substitutes and in some cases (like with these two companies) it doesn't. Best of luck to both of them.
And just why would Blockbuster want Circuit City? Not that BB is all that great itself, but buying the leaky little brother of the Titanic? I don't get this.
Like the article says, both companies have been tanking. I'd sure hate to see Best Buy as the only game in town for a lot of consumers, but you can't stop the free market from weeding out the weak sisters.
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Like the article says, both companies have been tanking. I'd sure hate to see Best Buy as the only game in town for a lot of consumers, but you can't stop the free market from weeding out the weak sisters.
That was my reaction to the article, competition for Best Buy, we're lucky down here, we have BrandsMart they sell below BestBuy or Circuit City, I have yet to buy any A/V gear at Best Buy.
Blockbuster to Buy Circuit City?
I'm surprised Best Buy hasn't stepped into the fray.
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