July 3, 2008
Last April Blockbuster proposed to buy Circuit City for at least $6 a share, but now the video rental chain has withdrawn its proposal, citing as the reason "market conditions." It's anybody's guess as to where the two companies will go from here. Circuit City is struggling, but is expected to have other suitors. Blockbuster might pursue trying to work out some kind of a deal with another consumer electronics retailer, perhaps even Radio Shack. It's also possible that Blockbuster might renew its attempt to acquire Circuit City later, but next time at a lower price.
