Another potential deal bites the dust.
"Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City," Blockbuster CEO Jim Keyes notes in the Dear John press release.
Mr. Market agrees with Blockbuster's decision. Shares of Blockbuster opened 10% higher this morning, while Circuit City's stock plummeted by 15% to hit a fresh all-time low.
It's a crushing blow for Circuit City. Blockbuster initially shocked the market by announcing its willingness to pay at least $6 a share, provided Circuit City let the video star take a peek at the consumer electronics superstore chain's books. Circuit City is trading at nearly a third of that price today.
Did Circuit City's finances fail to woo Blockbuster? I don't think so. Everyone knows that Circuit City is no Best Buy
He's not abandoning the notion of adding a little consumer-electronics sizzle to his stores. Keyes is still aiming for a "consumer retail proposition that would bring media content and electronic devices together under one brand."
That probably means going in-house for a solution, instead of pursuing more financially stable companies like Hastings
BlockShack? RadioBuster? They do roll off the tongue rather nicely....