Today Blockbuster offered to buy Circuit City Stores for at least $6.00 per share in cash.
But they didn’t make the offer via a stealthy series of secret meetings. They made it in public, via a press release distributed widely.
Say Blockbuster: “Unfortunately, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive proposal. Blockbuster is making its proposal public because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company. In addition, as Blockbuster has other strategic opportunities, its offer is conditioned upon timely commencement of the due diligence process.”
Blockbuster says the combination of the two companies would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices. The transaction could allow both companies to benefit from the revenue growth generated by their complementary products, while potentially improving consolidated financial performance and increasing shareholder value.
Or so they say…
The full text of Blockbuster's February 17 letter can be read here.