From Silicon Alley Insider: We were never able to wrap our heads around Blockbuster’s odd bid for Circuit City; neither were investors. But now that Blockbuster (BBI) has finally walked away from it, CEO Jim Keyes comes clean. He was never that interested in it, anyway. It was just more effective than paying for ads or rentin a booth at next year’s CES. WSJ:
Blockbuster is now a stronger contender in electronics retailing, Mr. Keyes argued, because manufacturers started courting the company after the bid.
“We were really not on the radar screen of any major consumer-electronics manufacturers previously,” Mr. Keyes told Dow Jones Newswires. “They did not see Blockbuster as a potential retailer of these devices. With the announcement of the Circuit City transaction publicly, it caught the attention of all the [consumer-electronics] providers.”
Of course, that result must only make investors wonder why Blockbuster offered a hefty 58% premium for Circuit City back in April, with no knowledge of its target’s finances, and pursued its bid so aggressively that it enlisted corporate activist Carl Icahn.
We think investors will also wonder just how much the Circuit City bid cost them in legal and banking fees. We imagine that they’ll find out soon, when the company files it’s next 10Q. Hope they got their money’s worth.
See Also: Blockbuster Gets Smart, Drops Crazy Circuit City Deal
Blockbuster Wants Another Foundering Retailer: Offers $1.3 Billion For Circuit City
Blockbuster: Did We Mention That Carl Icahn Likes Our Circuit City Bid?
Found! Someone Who Loves The Blockbuster-Circuit City Deal
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