This article was published 16 years ago

Blockbuster withdraws bid for Circuit City

Remember back in April when Blockbuster was experiencing a weird high and announced its intention to acquire Circuit City? Well, the after-effects have settled and the realization of video rental/electronics store combination wouldn’t work best in the current economy and withdrew its bid for Circuit City.

“Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster’s shareholders to proceed with an acquisition of Circuit City. We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand. We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment.”, Blockbuster CEO Jim Keyes said in a statement.