Blockbuster makes play for Circuit City

April 14, 2008 Video rental giant Blockbuster Inc. has made an unsolicited offer to buy Circuit City for at least $6 per share, or $1 billion, in cash, a 54% premium over the consumer electronic retailer's closing stock price of $3.90 on Friday. At a time of a sluggish U.S. economy and a lack of cheap financing for private equity-led buyouts, strategic buyers could well step up attempts to buy up more-affected peers on the cheap. The combination will result in a compelling consumer proposition that will drive significant revenue and margin enhancements as well as cost synergies.

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