Tuesday, April 15, 2008

Blockbuster to buy Circuit City - DOH!


Anyone else lose complete respect for Carl Icahn and his investment ideas? I mean, one declining franchise, without a good balance sheet, is going to purchase a #2 electronics franchise that is losing billions. Have the Blockbuster executives (based here in Dallas) walked through a Circuit City recently? Talk about DEAD FOOT TRAFFIC.....Everyone goes to Best Buy now because they don't know if Circuit City will be around 2 years from now!

This will be interesting to watch. Lets see if they truly can raise financing for what I believe, at face value, appears to be one of the strangest deals/acquisitions in the last 10-20 years. This is the kind of business scenario that Harvard Business Cases are created out of.

Dan Ross

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