Friday, May 09, 2008

Carl Icahn Serious About Circuit City

Things appear to be coming to a head in the struggle for ownership of beleaguered retailer Circuit City. Now financier Carl Icahn, himself a director of Blockbuster has said that he would be willing to consider paying Circuit City out of his own pocket if it is not feasible for Blockbuster to do so.

TWICE: Carl Icahn May Buy Circuit City

Circuit City had previously resisted Blockbuster’s $1 billion-plus buyout offer, citing its questionable financing. But in a statement released this morning, the CE chain said it had received a letter from Icahn, the billionaire investor and Blockbuster director, indicating that he would be willing to buy Circuit City if the video rental chain is unable to.

Given how the previously volatile CC had risen and plunged like a roller coaster since before Christmas, the last couple weeks of relative calm had signaled that perhaps something was in the works.

Will a deal go through, with or without Blockbuster? Watch this space.

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