Blockbuster's Boneheaded Bid for Circuit City

Two crappy companies do not equal one good company. This is a hilariously stupid move that will falter with shareholders of these two horrible companies only being hurt worse while the boneheads running the show make their millions. If Blockbuster really cared about their shareholders, they would be seeking an alliance (or buy-out) from one of the emerging media giants. Unfortunately, nobody wants Blockbuster because the company is doomed to be dead in the next 5-7 years. Proud to be a NFLX and BBY long, hehe.

guys, coming out and not knowing the whole story, but you start calling people bonheaded? Next time, instead of trying to get the headline to boost your # of subscribers, maybe you should wait and do some more research before you start throwing insults around. This article is pretty light on the facts.

It could end up being a great idea. Blockbuster has tons of real estate. Why not use it to put up a couple thousand "small box" electronics stores that up sell you when you go to rent movies. Tighter wallets mean less trips to Best Buy, but tighter wallets also mean more nights at home with the family watching movies. Guy goes to the video store and gets tempted with the latest electronic gadget. Goes back to return the movie, buys the electronic gadget, gets free rentals for buying more stuff, etc.....?

I don't see BBI sinking and everybody renting from Netflix. I for one have no time, and if I have a night available to watch a movie, I'm going out and renting it. I can't decide what I want, send the old movie back, wait 2 days for that movie to get to Netflix then wait another 2 days to order and finally get the movie I want from Netflix. I've tried it and it just doesn't work for me. The downloadable movies work great, unfortunately they mostly have 2nd tier movies available for download. If they had everything on there then yeah, I'd never rent again, but that's not the case today.

This comedy Duo on video actually liked the suited salesman approach .

Thank you for this bid Block Buster. Bought CC last week at $4 and sold it today for $5.03. I was buying CC as a long-term value play (hopefully not value trap). but a 28% pop in less than a week?! Should I have held on longer? I'd rather take my 28% return today and perhaps choose more wisely in the future what to buy. Before we criticize both companies, stranger things have happened. My biggest concern is where is BB going to find the money for $6-$8/share? Which bank will lend it to them for such a risky investment?

Two heads are better than one. I have owned both the stocks made some money on CC and lost some on BBI. I think this might give some new blood to both Companies.

Yes on the surface this bid is strange but the driver is unless Blockbuster does something bold to change their positioning they will be gone in a few years. This gives them a chance to take control off a porly managed business which could rival Best Buy. It may be a cheap way to buy into a large market and win a shot at a future.,

What I am trying to figure out is what they plan to do if they buy out Circuit City?

Good Investment, Will make a great footprint in this media age. Thinking about it from a consumers viewpoint. You don't usually go to Blockbuster to buy electronics, and you don't go to Circuit City to rent movies. Mesh the two together with a single new perspective and you have alot of heads turning. Go For It.

Maybe weewu53 gave us the clue to their idea. weewu53 said:- Monday April 14, 2008 11:47AM EDT Blockbuster already has tons of retail space in their video stores. This doesn't make sense. Stupid. Idiotic. Help!!! What if Blockbuster just moves into Circuit City locations, then sells all their real estate. Wouldn't that free up a lot of cash?

To greasymutt from equalfuture, the major problems with a BlockBuster and Circit City deal, are many, but some of the most obvious are, BlockBuster's brick and mortar stores are its major weakness, because the convenience of online shopping is what has clobbered them the most. Acquiring more stores or merging with a brick and mortar retailer would be adding to its major problems which is adding overhead to a business which is an online business soon to be dominated by downloading. The other problem or rather the same problem, BlockBuster has a reputation for treating its clients horrible when they enter there stores, in store customer service is horrible, so in addition to running a business that is a online business from brick and mortar stores. BlockBuster has no clue how to manage brick and mortar stores and employee training. Customers with the choice of conveniently renting or downloading a video should not be expected to drive to a store with poor customer service and poor selection. as i wrote in bbi pitches on motley fool, these are just the most obvious problems. Circit City is a ok brick and mortar store. By no means a top retailer but a sustainable company with a partnership with a large and successful retailer or a large cash infusion. We can discuss dozens of ways to save blockbuster, but most only involve starting a new company. basically the "boneheaded" idea was that blockbuster is still alive. i like comeback stories as well as anyone but only when its worth it, what kind of service can blockbuster provide better that its competitors.

BBI is going to place a bid for CC for $6.25 next the plan is to sell the properties and sell electronics ref. Apple store. It is not a bad idea BBI can not stay running with Red Box poping up at every corner renting movies for $1.45

CC and BBI if they merge together you need to sell your BBI and CC stock when they increase from the merger and get out any gain out of this merger this will only last for awhile... these are the stocks that a long term investment should not be taken... they will burn you! With decrease market share in both the electronic and video market share their ability to generate profit will decrease... better to sell and wait to see what the companies will do for awhile before investing back into this deal... with a slowing economy happening sales will be down along with earnings....

we all know circuit city at one time was a great store. But this buy out would not help either one .Maybe they should look some where else.

I WORK FOR BLOCKBUSTER AS A STORE MANAGER IN THE BAY AREA.I THINK THIS IS A GOOD THING AS BLOCKBUSTER STORES ARE CHANGING INTO A MORE RETAIL OUTLET.KIOSKS IN ALL STORES THAT SHOW BLU RAY AND THE PS3 AS WELL AS SELL ALL THE NEXT GENERATION GAMING.HOLLYWOOD IS OUT OF BUSINESS AND WE ARE ALREADY MAKING A PROFIT TO THE ONLINE BUSINESS.IF WE GET CIRCUIT CITY WE WILL HAVE MEDIA,ONLINE,GAMES AND RENTALS,WHO ELSE WILL HAVE THAT.I SEE WHAT THEY ARE DOING AND THIS IS A GOOD THING.

CC needs to do something . . . anything . . . to right the ship. It has become obvious that they have no intention of sacking the CEO or the board; and they have every intention of driving it into the ground. Maybe this move will work, but BBI must be nuts to offer a premium for a company which would be discounted. I thought Icahn was smart. May need to re-think that.