The next time you drop by to rent a flick you may pick the plasma TV too. In what is billed as a game-changing retail concept, Blockbuster Inc. has offered to pay more than $1 billion for struggling Circuit City Stores Inc.
Blockbuster Chief Executive James Keyes said combining the companies would create a chain that could sell portable devices and entertainment for them, much like Apple Inc.’s stores. But, asks Circuit City, can the movie-rental company finance the deal?
Circuit City is America’s No. 2 consumer electronics chain. Over the last year, Circuit City has done some restructuring — cutting positions, laying off 3,400 retail workers and hiring lower-paid replacements. Blockbuster is undergoing its own turnaround and has been cutting costs too. Analysts question the timing of this play for Circuit City.
Whether the deal fructifies or not, the concept holds promise - DVD players are selling like popcorns anyway!
Via: Yahoo News
