Tuesday, July 01, 2008

Blockbuster Abandons Circuit City Deal


So much for the entertainment fodder that the notion of beleaguered video rental retailer Blockbuster saving beleaguered CE retailer Circuit City provided all of us.




-- Blockbuster Inc., the world's largest movie-rental chain, walked away from an offer of as much as $1.35 billion for money-losing electronics retailer Circuit City Stores Inc. after taking a closer look at its finances.
``Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City,''
Jim Keyes, Blockbuster chairman and chief executive officer, said today in a statement.


Translation: "Circuit City needs a major overhaul from someone with deep pockets and a keen vision to become a competitive retailer, and that someone is definitely not us. Hell, we can barely look after ourselves!"


To be a little less sarcastic, perhaps their strategic advisers persuaded them that even if they could secure the financing (which, frankly, I doubt they could) the whole notion of tying two turkeys together to create an eagle, while a colorful metaphor, wasn't really all that good of an idea.

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3 comments:

taxitalk said...

Whos side are you on?

Lee_D said...

Ringside!

Anonymous said...

Beautifully and aptly put!