The news that Blockbuster had previously approached Circuit City back in February about a potential acquisition and after being ignored, Blockbuster appears to be ready to go hostile has resulted in a predominance of criticism from the financial and business communities. The most common response one reads or hears is twofold; why would two struggling retailers with different businesses wish to merge and how can Blockbuster whose stock has been pummeled manage to finance such an acquisition?
Check the satirical spin on the situation from Jack Flack of Portfolio.com. He seems to have brought some insight to the situation.
While I do not typically comment on potential acquisitions, I have a slightly different take on the situation specifically from a management change perspective.
Blockbuster's CEO, Jim Keyes, a former successful CEO at 7 Eleven, is anxious to find a way to rely on his talents as a successful merchandiser to turn Blockbuster around. Unlike his critics, who right now are many, he is thinking like the former CEO he was back at 7 Eleven. He believes he can find a way to turn the fortunes of both companies around as one firm. We will just have to see how this situation plays out.
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