Blockbuster Withdraws Circuit City Bid
Blockbuster Entertainment has backed out of its bid to purchase Circuit City for $1 billion, the latter company said late Tuesday in an investor release. According to the AP, Blockbuster backed out because the deal “didn’t make sense because of market conditions.”
Circuit City said in its release that its exploration of “strategic alternatives” remains ongoing.
“Our exploration of strategic alternatives is intended to serve the interests of our shareholders by considering every possible alternative to enhance shareholder value,” CEO Philip Schoonover said in the release. “The board’s review was not dependent on Blockbuster’s participation. We are diligently working with the parties involved in the process, and intend to continue our thorough approach until such point as the board determines upon a particular strategic course of action. The board has not established a deadline for completing the review.”