Blockbuster has just made a bid for Circuit City, effectively offering shareholders double what their shares are worth. The $6 to $8 bid (Circuit City stopped trading at $3.90 last week) hasn’t just confused me, but real life retail analysts. Said one, “It’s an odd move… Synergies between a video store and an electronics store aren’t that obvious.”
I agree. To the layman, both companies don’t look so hot. When was the last time Blockbuster was relevant to your life? Do you use its Netflix-like Total Access service? No one I know does. How often do you walk into Circuit City to buy electronics? I would guess that a lot of you (that is, the more tech savvy) shop online at places like Newegg or Amazon, where deals abound. No having to deal with good-intentioned-but-ultimately-annoying sales staff that way.
Although, in Circuit City’s defense, I used to go there all the time in high school when Best Buy was sold out of what I wanted, like Xbox Live in 2002. Best Buy was sold out but Circuit City, which was literally across the street (how smart is that?) had stacks of the starter kit just lying there. The sales guy was like, “Was Best Buy sold out? Figures.”
Oh, and how bad is Bloomberg’s Web site? A black background in 2008? Don’t they know how hard that is on the eyes?
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