Can Blockbuster afford $1B bid for Circuit City?

News Type: Event — Seeded on Tue Apr 15, 2008 8:03 AM EDT

Article Source: The Seattle Times

business, seattle-times, blockbuster, circuit-city, hostile-takeover, recipe-disaster

Blockbuster, which has been busy trying to fix its own movie-rental business, is making a hostile takeover bid of just over $1 billion for Circuit City with dreams of creating a huge chain that would sell electronic gadgets and rent movies and games.

The offer is larger than Blockbuster's entire stock-market value, but Chief Executive James Keyes said he was confident his company can swing the deal and that the move has the support of one of his board members, financier Carl Icahn, who could help with financing.

Icahn, Blockbuster's largest shareholder, did not return calls for comment.

Keyes said combining the companies would create a 9,300-store chain that could sell portable devices and entertainment for them, much like Apple's stores. The larger Circuit City stores would have movie-rental stores inside, and Blockbuster locations would offer a limited selection of electronics.

Published to:

Tedd Riggs's Column, All of Newsvine
Groups: GeekVine
Regions: Seattle/Tacoma, Dallas/Fort Worth

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{"commentId":1693161,"authorDomain":"TeddRi"}

Tedd Riggs

I am not a businessman, but from a engineering viewpoint, combining two weak links together makes for a far weaker combination. Exactly the opposite choice that was decided on this purchase. I think this could prove to be a disaster for both companies.

{"commentId":1693161,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

3 votes

#1 - Tue Apr 15, 2008 8:03 AM EDT

{"commentId":1695083,"authorDomain":"newsvice"}

epaph

wow this is news to me i have not heard of this proposal at all. i guess i have cranial rectal inversion ( head up my a$$)

{"commentId":1695083,"threadId":"250350","contentId":"1431795","authorDomain":"newsvice"}

4 votes

#2 - Tue Apr 15, 2008 4:27 PM EDT

{"commentId":1695098,"authorDomain":"TeddRi"}

Tedd Riggs

I think BlockBuster might have something similar but stuck more in the sand or cement.

{"commentId":1695098,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

3 votes

#3 - Tue Apr 15, 2008 4:32 PM EDT

{"commentId":1696186,"authorDomain":"aalva"}

aalva

Ha! Trying to take over Circuit City by "buying" them for more money than Blockbuster's worth? That sounds like an easy way to go bankrupt. But I guess it's been done, but I'm not sure (Kmart buying Sears).

{"commentId":1696186,"threadId":"250350","contentId":"1431795","authorDomain":"aalva"}

3 votes

#4 - Tue Apr 15, 2008 9:24 PM EDT

{"commentId":1696212,"authorDomain":"TeddRi"}

Tedd Riggs

Makes perfect sense to me. Buy half dead Circuit City, what you cannot afford, put the rest on the 21% Circuit City charge card....great deal...and a free Ford Pinto and AMC Gremlin at no extra charge !

{"commentId":1696212,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

4 votes

#4.1 - Tue Apr 15, 2008 9:32 PM EDT

{"commentId":1696283,"authorDomain":"newsvice"}

epaph

o i riggs i forgot to tell u i made a mistake and made the article private to friends i dont know how i did that but im working on fixing it

sry for the confusion it will be up again soon

{"commentId":1696283,"threadId":"250350","contentId":"1431795","authorDomain":"newsvice"}

3 votes

#5 - Tue Apr 15, 2008 9:50 PM EDT

{"commentId":1696307,"authorDomain":"TeddRi"}

Tedd Riggs

I should still be able to see if as I am on your friends list, it does not even show up in Vinestalk, it looks like its gone, that was weird..

{"commentId":1696307,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

2 votes

#5.1 - Tue Apr 15, 2008 9:54 PM EDT

{"commentId":1696370,"authorDomain":"newsvice"}

epaph

yea it said for friends only and i checked ur in the list of my friends but it was gone from my view too... weird weird weird

{"commentId":1696370,"threadId":"250350","contentId":"1431795","authorDomain":"newsvice"}

3 votes

#5.2 - Tue Apr 15, 2008 10:11 PM EDT

{"commentId":1696408,"authorDomain":"TeddRi"}

Tedd Riggs

I think the software for Newsvine was written by the people that could not make it at AOL....

{"commentId":1696408,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

2 votes

#5.3 - Tue Apr 15, 2008 10:20 PM EDT

{"commentId":1696537,"authorDomain":"newsvice"}

epaph

HAHA!

thats a great line

i hope you get chances to say that often!

i can think of a few opportunities

vista!

chase!

{"commentId":1696537,"threadId":"250350","contentId":"1431795","authorDomain":"newsvice"}

3 votes

#5.4 - Tue Apr 15, 2008 11:06 PM EDT

{"commentId":1696706,"authorDomain":"TeddRi"}

Tedd Riggs

Remember where I lived, I have to whisper "Vista Sucks"

I live 1/2 mile from the building Vista was born in....Same one as Windows ME...It had a Ghost from a past life...

{"commentId":1696706,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

3 votes

#5.5 - Wed Apr 16, 2008 12:20 AM EDT

{"commentId":1698565,"authorDomain":"newsvice"}

epaph

i cant stand vista and its server brother wAS 2008 x64 sucks the big one too!

it asks you permission to do everything known to man...you cant even download something without clicking through a million "add site to safe list" windows because most online sites use mirror sites to route their dl traffic.

it sux!

{"commentId":1698565,"threadId":"250350","contentId":"1431795","authorDomain":"newsvice"}

3 votes

#6 - Wed Apr 16, 2008 12:31 PM EDT

{"commentId":1698587,"authorDomain":"TeddRi"}

Tedd Riggs

I know, We called it the PG-13 Version, you cannot do anything at all, without going thru at least, "yes, I am sure I want to do this, damit it !"....

{"commentId":1698587,"threadId":"250350","contentId":"1431795","authorDomain":"TeddRi"}

3 votes

#6.1 - Wed Apr 16, 2008 12:37 PM EDT

{"canLink":false,"threadId":"250350","isPrivate":false}

TEDD RIGGS

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Can Blockbuster afford $1B bid for Circuit City?

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Remember where I lived, I have to whisper "Vista Sucks"

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