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Blockbuster Makes $1.35B Bid for Circuit City
Movie-rental chain takes its $6-$8 per share bid public
By Jim O'Neill
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Posted Apr 14, 08 7:53 AM CDT
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(Newser)
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Movie-rental chain Blockbuster went public today with an offer to buy struggling consumer electronics retailer Circuit City for between $6 and $8 a share, reports the Wall Street Journal. Blockbuster made the offer—worth up to $1.35 billion—in February, but said Circuit City hasn’t opened its books. Circuit City closed at $3.90 Friday.
Combining the two businesses would “capitalize on the growing convergence of media content and electronic devices," said a Blockbuster statement. Both companies have struggled, with Circuit City shares slumping 80% in the past year, reports Bloomberg. Blockbuster is predicting a first-quarter profit of $30 million after a $49 million loss a year ago.