Its buying season - Blockbuster proposes to Circuit City

It seems to me that buyouts are in the season with companies looking to mate with others. Microsoft’s multi-billion dollar proposal to Yahoo! still hasn’t gone cold & now we have US movie rental service Blockbuster putting forth a proposal to electronic goods retail chain Circuit City!! Apparently Blockbuster made their billion dollar offer to Circuit City in february this year but haven’t got any response from them yet so Blockbuster decided to go public with its offer. It hasn’t been a walk in the park for both companies off late; Circuit City posted a $200 million loss at the end of 2007 while Blockbuster has been fighting hard with competitor Netflix which provides both physical deliveries of movies as well as digital downloads(something which Blockbuster doesn’t provides & which definitely is looking like a serious threat lest company changes itself).

But how acquisition of retail chain Circuit City help Blockbuster? I can’t find an answer to this, unless Blockbuster is looking to diversify its business to have a fallback if Netflix puts their movie rental business out!!

via c|net