Blockbuster bidding $1 billion-plus for Circuit City

What a waste of money... although they have to do something since Blockbuster is likely to be out of business/obsolete in the next 10 years. Might as well spend it while they have it!
 
That seems really ass backwards to me, but who knows, maybe blockbuster saved up a lot of that sweet sweet movie rental money.
 
[quote name='JolietJake']That seems really ass backwards to me, but who knows, maybe blockbuster saved up a lot of that sweet sweet movie rental, money.[/quote]

Just as ass backwards as their "no late fees" gimmick a while back.
 
Damn, that would be kinda cool though. Maybe they'd make a buy 2 get 1 free on new games. =) Always dreaming...

I'm surprised Best Buy isn't buying it out.
 
[quote name='javeryh']What a waste of money... although they have to do something since Blockbuster is likely to be out of business/obsolete in the next 10 years. Might as well spend it while they have it![/QUOTE]

10 years? Methinks you give them too much latitude.
 
[quote name='Hybrid5006']Damn, that would be kinda cool though. Maybe they'd make a buy 2 get 1 free on new games. =) Always dreaming...

I'm surprised Best Buy isn't buying it out.[/quote]


Because they can't keep the name "Best" Buy by making a stupid buy. :lol:

They'd be better off letting Circuit City implode.
 
[quote name='Hybrid5006']Damn, that would be kinda cool though. Maybe they'd make a buy 2 get 1 free on new games. =) Always dreaming...

I'm surprised Best Buy isn't buying it out.[/quote]

Plus that verges on Monoply.
 
[quote name='yamas']Plus that verges on Monoply.[/QUOTE]

Monopolies are defined as when companies actively sabotage competitors attempts to enter the market/compete (not a perfect definition, but that's the gist of it).

It's not a monopoly if a company is just large and kicking ass.
 
[quote name='yukine']I could of sworn Blockbuster was on the verge of bankruptcy not very long ago :whistle2:k[/QUOTE]

I'm just curious where the billion came from - their business has been dropping off dramatically, and their Netflix competitor sure didn't do well enough to give them billions to throw around.
 
[quote name='Liquid 2']Monopolies are defined as when companies actively sabotage competitors attempts to enter the market/compete (not a perfect definition, but that's the gist of it).

It's not a monopoly if a company is just large and kicking ass.[/quote]Uh, no. A monopoly is when one entity has total control over a product or service. They don't have to be sabotaging competitors or anything like that.
 
[quote name='VanillaGorilla']Uh, no. A monopoly is when one entity has total control over a product or service. They don't have to be sabotaging competitors or anything like that.[/QUOTE]

Wikipedia says: "In Economics, monopoly (also "Pure monopoly") exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. Monopolies are thus characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods."

VanillaGorilla = Correct.

[quote name='yamas']Plus that verges on Monoply.[/QUOTE]

yamas = WRONG. A good definition of a monopoly is the Siruis-XM merger; there was debate over whether that was a monopoly because those are the only two companies that offer satellite radio in America. Since Blockbuster and Circuit City aren't the only places that sell movies (heck, they really aren't even in the same business, given that one's sales-based and the other is primarily rentals), this isn't even close to being a monopoly.
 
[quote name='VanillaGorilla']Uh, no. A monopoly is when one entity has total control over a product or service. They don't have to be sabotaging competitors or anything like that.[/QUOTE]

How do they retain their control over the particular market?
 
[quote name='javeryh']What a waste of money... although they have to do something since Blockbuster is likely to be out of business/obsolete in the next 10 years. Might as well spend it while they have it![/quote]

A billion seems like a lot but CC owns a lot of land and such.

I think it's a great idea. Within a few years Block Buster will be out of business because everyone will rent online or watch things online, but if they buy the stores they can redo them and make a small section a BlockBuster inside the CC.

Either way I hate both stores and don't care what they do.
 
[quote name='Gothic Walrus']
yamas = WRONG. A good definition of a monopoly is the Siruis-XM merger; there was debate over whether that was a monopoly because those are the only two companies that offer satellite radio in America. Since Blockbuster and Circuit City aren't the only places that sell movies (heck, they really aren't even in the same business, given that one's sales-based and the other is primarily rentals), this isn't even close to being a monopoly.[/quote]

Exactly, you can buy movies at Target and Walmart and K-Mart and Best Buy and TRU and FYE and Fry's and even Walgreens and Stop and Shop, and some CVSs. There is no case for it being a monopoly.
 
I wonder how they will be able to borrow enough money to finance this in the current environment. Clear Channel had to take their banks to court to force them to abide by the contract (written during better times) to finance that buyout.

I read about it this morning in a news articles which I can't seem to find right now. Anyways, it had this really great quote from a analyst who said along the lines of "this deal is like two drunks trying to hold each other up". I lulz'd
 
[quote name='Liquid 2']How do they retain their control over the particular market?[/QUOTE]

Either by being the only ones that offer that particular product or service, or by controlling the entire process (which is called a vertical monopoly). For the second example try this:

For example, if a single company owns or controls foresting, paper manufacture, typesetting and publishing, and book retail processes, that company would be said to have a vertical monopoly in books.
Click to expand...
 
[quote name='Gothic Walrus']yamas = WRONG. A good definition of a monopoly is the Siruis-XM merger; there was debate over whether that was a monopoly because those are the only two companies that offer satellite radio in America. Since Blockbuster and Circuit City aren't the only places that sell movies (heck, they really aren't even in the same business, given that one's sales-based and the other is primarily rentals), this isn't even close to being a monopoly.[/quote]

I think yamas was referring to the comment about Best Buy buying CC, not Blockbuster. Regardless, that still wouldn't be a monopoly though, since there are plenty of competitors in the market. Besides, Wal-Mart, IIRC, is actually the biggest electronics retailer in the world anyway.
 
Good lord I hope this happens, my CC stock is dying and a takeover could rejuvenate the stock price so I can get the hell off this sinking ship.
 
[quote name='neocisco']I think yamas was referring to the comment about Best Buy buying CC, not Blockbuster. Regardless, that still wouldn't be a monopoly though, since there are plenty of competitors in the market. Besides, Wal-Mart, IIRC, is actually the biggest electronics retailer in the world anyway.[/quote]

Best Buy and CC teaming up would be as big of a monopoly as Gamestop and EB teaming up.
 
[quote name='bigdaddy']Best Buy and CC teaming up would be as big of a monopoly as Gamestop and EB teaming up.[/quote]

Vague much? Meaning you think it would be a monopoly or not?
 
[quote name='mitch079']What do you get when one piece of crap buys a bigger piece of crap? Blockbuster City![/quote]


I like Circuitbuster. Sounds like some badass robot. :robot:
 
[quote name='elchbulle']Good lord I hope this happens, my CC stock is dying and a takeover could rejuvenate the stock price so I can get the hell off this sinking ship.[/quote]

Why in gods name would you buy stock from them in the first place...? lol
 
[quote name='help1']I had no idea that CC was actually smaller than BB.[/quote]


In many ways. The main reason I even go to Best Buy is DVDs and CC doesn't even come close to what BB offers. I was pissed when CC shut down in Martinsville though. We really don't have much besides Wal-Mart to begin with.
 
[quote name='neocisco']Vague much? Meaning you think it would be a monopoly or not?[/quote]

I wasn't vague.

It's clear that I meant it's not a monopoly. GS and EB team up and... nothing happened! You can still buy the games from at least 10 other stores.
 
[quote name='GuilewasNK']In many ways. The main reason I even go to Best Buy is DVDs and CC doesn't even come close to what BB offers. I was pissed when CC shut down in Martinsville though. We really don't have much besides Wal-Mart to begin with.[/quote]

Lol, no not best buy, but Block Buster.
:lol:
 
The first thing I thought when I saw this proposed buyout was "I guess Blockbuster wants to make sure another company goes down with them".
 
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