Blockbuster Inc. appealed directly to Circuit City Stores Inc.’s shareholders on Monday, saying it is willing to buy the Richmond company for more than $1 billion.
Blockbuster proposed the buyout offer to Circuit City CEO and Chairman Philip Schoonover in February, Blockbuster said in a press release. But Circuit City failed to follow up and provide due diligence necessary for Blockbuster to make a definitive agreement, Blockbuster said.
Blockbuster has offered $6 to $8 per share to buy the struggling electronics retailer. The stock price closed at $3.90 on Friday.
Blockbuster, the Dallas-based movie rental chain, said it had been in discussions with Circuit City about a possible merger. “The combination of Blockbuster and Circuit City will result in an $18 billion retail enterprise uniquely positioned for the convergence of media content and electronic devices,” Blockbuster Chairman and CEO Jim Keyes wrote in a Feb. 17 letter to Schoonover. “We would seek to differentiate products in both Blockbuster and Circuit City stores by offering exclusive content and content-enabled devices.”
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