Blockbuster Plays Hard to Get (Lost)
Blockbuster CEO Jim Keyes says acquiring Circuit City will be “a challenge,” and while the company is up for one, a challenge of this particular sort may be more than it can handle. Because a week after announcing its $1.3 billion gambit for the foundering–yes, foundering–electronics chain, Blockbuster (BBI) says it would rather drop it than go hostile.
And with Circuit City (CC) refusing to allow the video-rental company access to its books until Blockbuster proves it can actually afford the acquisition, it would seem hostile is the only way to go. “The heart of the matter is that we still need further facts,” Keyes told The Wall Street Journal, referring to Blockbuster’s failure to gain access to Circuit City’s books. “With those facts, we can choose whether to proceed or get back to our continued success.”