Blockbuster has offered to buy Circuit City for a little over $1 billion, with the goal of creating "a chain that could sell portable devices and entertainment for them, much like Apple Inc.'s stores." [Chicago Tribune] (Thanks to everyone who sent this in!)
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Or... an express ticket on the highway to mutual destruction. These two companies are both not long for this world. If this acquisition happened, it would probably just accelerate the inevitable.
The very definition of a clusterf***.
So what's so hard about making a little shelf room in the already everywhere Blockbuster locations?
It's not like "portable devices" take up much shelf space. Unless you count the Kaypro.
I have about $320 in Circuit City gift cards. Does this mean I should get to spending them ASAP? I don't want this to turn out like Sharper Image, etc.
@fuzzycuffs: You probably have a while. Blockbuster has been wooing Circuit City since February, and only made it public today to try to get CC's shareholders to force the sale.
Problem #1: Blockbuster stores are too small.
Problem #2: Circuit City stores are too few.
If they could pull of the integration, it actually has a chance. That leads us to #3...
Problem #3: They're not Apple. They don't actually MAKE anything. Good luck getting all the partners in line to create a unified experience.
This would be convenient for me. There would only be one store I wouldn't bother going to instead of two. Think of all the time I'd save.
Almost as sad when Sears and K-Mart merged.
it's the blind buying out the blind.
may they both merge and negate their own existances....
@fuzzymuffins: Mutual annihilation? I guess that assumes either Circuit City or Blockbuster actually have decent customer service.
@sean98125: Agreed. I would stop going to CC if they were bought by Blockbuster because I HATE Blockbuster.
How is it even possible that Blockbuster has the money for such a deal? Having they been burning money for like...the past 7 years?
fuzzycuffs: Sell them on Ebay for 90% of face value and be glad you dodged the bullet.
I too am amazed they've actually got the cash for such a deal, and even more amazed they'd pay that much for CC.
Can you say, "short sell?"
Wow, honestly I think this is doomed to fail. What does blockbuster really help to gain out of the merger. Sure they'll have more locations over all, but everything they would have to create to make this work doesn't really exist. It'll be interesting to see how they try and make the merger profitable. Hopefully they don't become another Sears/Kmart
with the goal of creating "a chain that could sell portable devices and entertainment for them, much like Apple Inc.'s stores."
Wtf are they smoking? Who in their right mind would compare these brands with Apple. This is wishful thinking from some late night brainstorming. It will fail.
Their new name could be Block City, and they can rename their Firedog service Circuit Buster. If the don't sell you broken down disasters right out of the gate, they can always break it for you. Craptacular goodness ahead.
I have no experience with Blockbuster but Circuit City is about as dodgy as any business I have ever dealt with. Impossible rebate conditions and gift card rip-offs are standard procedure for these rascals.
Wow! This is like some nightmare version of the fake story about Walmart and Best Buy merging.