AAPL Stock: 111.31 ( + 0.53 )

Printed from

Blockbuster backs out of Circuit City offer

updated 10:50 pm EDT, Tue July 1, 2008

BBuster Withdraws C City

Video retailer Blockbuster tonight said it has withdrawn its offer to buy Circuit City. The company provides few details as to the reason for its sudden exit but says that a combination of "market conditions" and the process of due diligence, or examining the health of Circuit City as a business, have led it to believe that a takeover of the electronics chain is not in its best interests. Blockbuster still argues that the idea of unifying media and electronics under one name but that it will have to do so through its own stores rather than Circuit City's locations.

Circuit City has yet to comment on the matter.

The deal would have been worth $1 billion and is understood to have been a core component of a strategy to leave the traditional but rapidly failing physical movie rental business in favor of direct downloads or sideloading content to portable media players. Blockbuster is already known to be exploring the possibility of a networked media hub tied into its Movielink Internet service as well as in-store kiosks that would load rentals directly on to handhelds, bypassing a home computer altogether.

by MacNN Staff





Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Polk Hinge Wireless headphones

Polk, a company well-established in the audio market, recently released a new set of headphones aimed at the lifestyle market. The Hin ...

Blue Yeti Studio

Despite being very familiar with Blue Microphones' lower-end products -- we've long recommended the company's Snowball line of mics ...

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...


Most Commented