Blockbuster won’t buy Circuit City afterall
In February, Blockbuster offered as much as US$1.33 billion for Circuit City, with the price dependent on a review of its records. The offer appears to have been contentious from the start. The movie rental company said it first made the offer directly to Circuit City’s CEO but was not allowed to review the company’s books in order to set a firm offer price. It made the offer public in the hope that shareholders might pressure the company to negotiate a deal.
Pressure from some investors did ensue, and in May, Circuit City opened up its books for Blockbuster to see. Circuit City has maintained that Blockbuster has failed to adequately explain how it would finance the deal.