Space Ramblings

Blockbuster Circuit City bid Officially Over

Not that it actually hasn’t been over for a while already. This kills the last of the big three high profile takeover/mergers, Microsoft/Yahoo, EA/Take-Two and now Blockbuster/Circuit City. The dubious appeal of Blockbuster seizing Circuit City was that it involved two sinking companies grabbing on to each other in stormy seas and sinking twice as fast under the weight of their combined panic, weight and general ‘dumbosity’. In the sinking company sweepstakes, Blockbuster at least has half an excuse, it’s a giant whose entire concept is wedded to an outmoded technology, the physical movie and game rental. Blockbuster is on the way out and knows it and is scrambling for any chance to avert its own obsolescence. Circuit City has less of an excuse for its implosion and much of its pain is self-inflicted, caused by stupid decisions such as firing its top sales staff to avoid paying for their seniority. Neither had much of anything to offer each other. Blockbuster already has ubiquitous stores all over America. What it needs is to either dump the brick and mortar and rent direct, a technology they had plenty of chances to develop and didn’t, or just go quietly into the digital twilight.

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