BlockBusters Proposed Buyout of Circuit City

Waking up today while scanning through my email, I halted at the site of a link to a news article on AOL news labeled "Blockbuster Makes Bid to Buy Circuit City". At first I was literally quite surprised, Circuit City Stores Inc. may be the second largest electronics chain in the United States, nevertheless the company has had some financial trouble in the past.

Plenty of people believed that the company was truly approaching bankruptcy, since in 2007 the company laid off 3,400 workers. Perhaps since the company looks to be on good terms right now financial wise, BlockBuster Inc. has been in touch with Circuit City Stores Inc. lately to make a deal.

Likewise, as you may know, BlockBuster Inc. has not exactly been on the top of things lately either. The company seems to have problems competing with a new breed of businesses such as Netflix Inc. which offer movie rentals online.

Is this a favorable idea on BlockBuster's end?

Potentially, I am no financial expert however, I am merely a consumer that possesses an interest in electronics retail chains. It's very interesting to think about, a big name movie rental chain offering to acquire an electronics company.

When I first read it I thought "Great, one dead company purchasing another.", I do not shop at Circuit City stores that frequently, although normally when I do there is not much business there at all.

Personally I like to shop at Best Buy, only down side is the workers tend not to understand much about the product, but that stands true for a lot of retail stores these days. I am not sure what Block Buster is scheming, but surely they need to do something to stay in business.

If anything, I imagine that Circuit City should wait and buy out BlockBuster then place compact movie rental stores in each store. That way consumers can buy, and rent movies, and shop for other electronics all in the same store, sorta like how Wal-Mart has mini restaurants and so on at their stores.

Does this signify anything for the future of electronics retail chains?

I atmospherically disbelieve it, just another couple of American companies buying one another out. This sort of reminds me of Electronic Art's hostile take over of Take Two, after Electronic Art's could not reach a deal with Take Two, they aimed for a hostile take over.

Could the same occurrences take place in this circumstance? Somehow I do not see that to be likely, but you never know. The only way this buy out could affect the future of electronics retail is if they take the advice I stated above, accumulating movie rental stores inside Circuit City stores.

Therefore, in a way would attract costumers in from both angles, amplifying sales a decent amount. I imagine we shall just have to wait and see what happens won't we? It will be interesting to witness how this turns out.