p2pnet news | Products:- Blockbuster wants to buy Circuit City Stores.

But the former appears to have grown tired of waiting for the latter to respond to its offer of $1.35 billion, with a February 21 deadline, and has now gone public.

Circuit City, the second- largest US electronics retailer, “struggles with falling sales,” says Bloomberg News, going on Blockbuster wrote to Circuit City CEO Philip Schoonover and bid between $6 and $8 a share for the company.

Blockbuster said Circuit City hasn’t given access to its books.

“The offer comes six weeks after Circuit City investor Mark Wattles said he wanted Schoonover ousted and a buyer found,” says the story, going on:

“Blockbuster CEO Jim Keyes said today that a merger would save money and combine expertise in media content and electronic devices.”

The Wall Street Journal is carrying the letter Blockbuster CEO Jim Keyes sent to Schoonover.

It says, in part:

“We have reviewed this potential transaction with our board of directors, and it is with their full support that we make this request to move forward. Given the importance of this opportunity to Blockbuster and the strong desire to complete it as soon as possible, we would be grateful for your response no later than 5:00 PM CST on February 21, 2008.”

Adds Bloomberg:

“The video-rental company made the proposal public as it “believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company,” it said in the statement. ‘As Blockbuster has other strategic opportunities, its offer is conditioned upon timely commencement of the due diligence process’.”

Slashdot it!

Bloomberg News - Blockbuster Bids Up to $1.35 Billion for Circuit City, April 14, 2008
Wall Street Journal - Blockbuster’s Letter to Circuit City, September 11, April 14, 2008

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This entry was posted on Monday, April 14th, 2008 at 5:08 am and is filed under Product News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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