Circuit City May Announce Deal Soon; Not Necessarily Blockbuster Though
This story was written by Joseph Weisenthal.
There hasn't been much movement on the potential deal between Blockbuster (NYSE: BBI) and Circuit City since the electronics retailer agreed to open up its books to the movie rental chain. The only real development is that Circuit City has turned in some rough results, prompting speculation that Blockbuster may walk away. Circuit City held a shareholders meeting yesterday where little was made of the deal, but major investor Mark Wattles told Reuters that something is likely to be announced soon. He said he had familiarity with the process, saying it has done well, with multiple bidders having emerged. Besides Blockbuster, the potential suitors include both strategic buyers and financial ones.
Shares of Blockbuster actually ticked up, supposedly on the sense that Blockbuster won't be the buyer. That's not surprising, since investors have always seen the deal as a punt, not backed up by anything concrete.
By Joseph Weisenthal