Blockbuster has recently drawn the ire of movie enthusiasts by inking “exclusive” rental deals with the likes of IFC. The upshot of this deal is that Blockbuster will retain the exclusive physical rental distribution rights for IFC titles for three years after each street date. Why is this important? Because Blockbuster CEO Jim Keyes wants to buy Circuit City for the following reason:
“The combination of Blockbuster and Circuit City will result in an $18 billion retail enterprise uniquely positioned for the convergence of media content and electronic devices,” Keyes wrote. “We would seek to differentiate products in both Blockbuster and Circuit City stores by offering exclusive content and content-enabled devices.
Circuit City was initially unwilling to talk to Blockbuster, but today CNNMoney said that Circuit City has agreed to open its books:
“We are pleased to have reached an agreement with Circuit City to conduct due diligence and further explore a possible merger between our two companies,” said Blockbuster’s management in statement Friday. “We continue to believe this combination would create significant cost and operating synergies therefore unlocking substantial value for our shareholders.”
We have to ask you… are you interested in “exclusive content and content-enabled devices” from Circuit City?