Blockbuster Still Looking at Circuit City Deal
Fresh off announcing its strongest quarter in memory, Blockbuster, Inc.’s CEO says that the company is still looking into whether it will continue its bid for Circuit City.
CEO Jim Keyes told Dow Jones Newswires Friday that his company will not pursue the deal “unless the situation makes sense both strategically and financially and also returns significant value for our shareholders.” He added that such a transaction is not critical to the company’s “transformation,” but that he would prefer to see a timely resolution to the matter.
Blockbuster on Friday stated quarterly earnings which placed profit at $45.4 million for the three months ending April 6, a huge turnaround from the loss $49 million for the same period the year before. According to the Reuters, the turnaround was mostly due to an aggressive cost-cutting campaign, as well as improving sales at domestic stores.