The Motley Fool Previous Page Blockbuster: Playing Possum? [Motley Fool Take] January 14, 2005

By Rick Aristotle Munarriz (TMF Edible)

Is Blockbuster (NYSE: BBI) smarter than it's letting on to be?

In an interesting thread in our active Netflix (Nasdaq: NFLX) discussion board, cgski wondered if it wouldn't be cheaper for Blockbuster to acquire Netflix -- now marked down to an enterprise value of roughly $400 million -- as a way out of this margin-munching "fight to the death." In what earns my vote as the best "wish I had written it first" one-line reply of the week, AceInMySleeve offered up this brief yet meaty nugget: "Even better if you can spend 50 million more to knock the price tag down another 100 million."

Can Blockbuster really be that evil, cunning and brilliant? Let's think about it some more. Remember when Netflix got hammered back in October after it announc