Apparently somebody wants to see a Circuit City-Blockbuster combination — someone besides Blockbuster management and Carl Icahn.
Circuit City’s largest shareholder, HBK Investments LP, is calling for the foundering retailer to put itself up for sale and is pressuring the company to begin talks with Blockbuster, the WSJ reports. HBK holds about 9% of the company. Up until now Circuit City had refused to provide Blockbuster with financial information.
Since Blockbuster announced it was going after Circuit City earlier this month, the deal has been almost universally panned — both because Wall Street doesn’t know where Blockbuster will come up with the $1.3 billion purchase price, and because they can’t figure out the benefits of shoving two troubled chains together.
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