In a sign the market had lost hope that Blockbuster (BBI) is a rational and well-run company, the simple announcement that Blockbuster would only buy Circuit City (CC) if it added to earnings is making investors happy. BBI was up in the pre-market and surged almost 10% on Tuesday after Citigroup said they liked the idea of a Blockbuster/Circuit City merger. (Everyone else hates it).
Whether the potential merger leads to the $11 stock Citi anticipates remains to be seen. But investors do seem encouraged that there is intelligent life at the Blockbuster helm.
See Also: Citi: We Actually Like The Terrible Blockbuster-Circuit City Deal