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Block-Bust

by sscatz on July 2nd, 2008

Blockbuster withdraws plan to acquire Circuit City

Blockbuster Inc. said Tuesday it is withdrawing its proposal to buy Circuit City Stores Inc.  Chief Executive James Keyes said in a written statement that the proposed deal, at a price of more than $1 billion, didn’t make sense because they don’t have a billion dollars. 

“Let’s face it, when was the last time you walked into a Blockbuster?” Keyes asked.  “We were thinking of paying in stale popcorn and old Twizlers, but for some reason that didn’t fly.”

Circuit City Chief Executive Philip J. Schoonover said his board was still exploring strategies to help shareholders.  The retailer’s stock has dropped below $3 from its peak near $31 in May 2006, probably because they’re not selling stuff and customers are tired of waiting around while employees play video games.

Some analysts had wondered whether a marriage of two companies that each lost money last year was wise.  The answer appears to be, “No, duh.”

Blockbuster CEO James Keyes

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