Blockbuster Inc. yesterday backed away from its $1bn bid for consumer electronics retailer Circuit City citing gloomy “market conditions”. The movie rental chain’s CEO James Keyes said in a statement: “We have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit …
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Posted Wednesday 2nd July 2008 13:46 GMT
They realized they had gotten their math wrong:
1 dying company + 1 dying company ≠ a successful company.
(they'd probably overlooked the little slashy line through the equals the first time around)
Posted Wednesday 2nd July 2008 20:38 GMT
The reason to do this was to boost their share price when they announce that they were actually not interested...
Posted Wednesday 2nd July 2008 22:45 GMT
by gaming the system, now they can come back with a lower offer and observe that now that the share price is lower it's more affordable.
Lather, Rinse, Repeat until the price is right.
The markets are so easy to manipulate if you've got enough money to throw around.
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