Blockbuster officially announced today that it wants to merge with Circuit City. The guys over at Blockie sent a ‘let’s get it on’ request over to Circuit back in February and apparently didn’t get the timely response they wanted. It’s been 2 months and Blockbuster claims Circuit didn’t get their shit together to make this thing happen.
In order to put some extra pressure on Circuit City to finalize the deal, Blockbuster aired all the dirty laundry this morning causing both stocks to go nuts. Block stocks dropped substantially, while Circuit stocks shot up.
It’s kind of like if you’re a huge nerd in high school, but another equally big nerd asks you on a date and then you turn that sucka down. They suck even more, while you get a little boost for being a prick.
The bottom line is that both companies are not doing well. Blockbuster is closing tons of stores all over the country because Netflix and Apple TV offer better services that don’t require driving to the store and paying dumb late fees / now-you-have-to-buy-the-movie fees. Same thing with Circuit City, they’ve got Best Buy to compete with, and comparing Best Buy to Circuit City is similar to comparing the real Olympics with the special Olympics.
Does anyone think this could actually work? I mean, maybe they go for the merger and “Circuit-buster” becomes a huge success?
New York Times: Blockbuster Makes A Run At Circuit City, April 14, 2008