Blockbuster withdraws Circuit City offer

July 01, 2008 Blockbuster said late Tuesday that it has withdrawn its offer to buy Circuit City and instead will focus on using its own stores to become a retailer of consumer electronics products. Blockbuster CEO Jim Keyes said late Tuesday that "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." Keyes has been saying that Blockbuster intends on being an important retailer of entertainment gadgets so that consumers won't only be able to rent or buy movies and video games but also purchase the devices that play them.

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