Wednesday, July 2, 2008
Blockbuster Withdraws Circuit City Proposal
Dallas-based movie rental chain Blockbuster Inc. announced Tuesday that it has withdrawn its proposal to acquire troubled electronics retailer Circuit City. Citing market conditions and data gathered during the initial due diligence process, Jim Keyes, Blockbuster’s chairman and CEO, said such a transaction would not be in his company's best interests. Keyes added that Blockbuster will continue to pursue mergers that would bring "media content and electronic devices together under one brand." In a separate announcement, also made Tuesday, Circuit City said its board of directors will continue to explore strategic alternatives in an effort to improve shareholder value. "The board's review was not dependent on Blockbuster’s participation," explained Philip J. Schoonover, Circuit City’s chairman, president and chief executive officer in a statement. "We are diligently working with the parties involved in the process and intend to continue our thorough approach until such point as the board determines upon a particular strategic course of action. The board has not established a deadline for completing the review."