Blockbuster offers $1.3 billion for Circuit City

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Struggling video retail chain Blockbuster has offered to pay up to $1.3 billion for electronics retail chain Circuit City. Apparently, the offer was made nearly two months ago, but since Circuit City has not provided the requested due diligence necessary to move the deal forward, Blockbuster is pulling a Microsoft and making the proposal public in hopes of inciting shareholders.

While earlier rumors suggested that the movie rental giant was moving into video streaming, Blockbuster’s unsolicited bid for Circuit City could signal the company is moving towards a new direction. How exactly snapping up a failing retail chain will help them in the long-term remains to be seen.

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