Will Blockbuster Acquire Circuit City?

April 14, 2008

Blockbuster has publicly announced today an offer to acquire Circuit City. According to a Blockbuster press release, "combination of the two companies would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices." There are reports Blockbuster is considering the idea of streaming movies and other video content directly over broadband to TVs using a proprietary set-top box. The proposed acquisition may be in part motivated by the concept of using Circuit City stores as an outlet to sell the set-top boxes. However, some analysts are dubious that the acquisition makes good business sense.