Looks like the construction for the new city on the block has been cancelled.
Blockbuster has announced yesterday that the company has decided to withdraw its proposal to acquire Circuit City. Here's the official statement:
"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," said Jim Keyes, Blockbuster Chairman and CEO. "We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand. We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment."
Blockbuster stated its interest to acquire Circuit City earlier this year. Circuit City has been ailing in losses in both stocks and consumers. The Blockbuster deal would have gave the company a boost and intrigued some (if not, a few) investors. The fate of Circuit City is still up in the air but with competitors such as Best Buy, who knows how long they could stay up there.