OrochimaruVoldemort's Journal: What Blockbuster Stands to gain from Circuit City

When blockbuster announced it wanted to buy circuit city, that has to be the dumbest move of their lives. They must either know something we don't or the sum of the parts is worth more than the whole. Other than those two, it would be a losing investment for them. Certainly, they could do better than Circuit City. Their costumer service is lousy, they have a small selection, and what they do have is very pricy. If I were the head of Blockbuster, I would go after Best Buy or Tiger Direct (assuming they are in it for the electronic, which they probably are).

Yes and no

[Captain Splendid]

Yeah, it is bad for them, but not as bad as disappearing altogether, which is really all they have to look forward to currently. Teaming up with CC won't do much for 'em, but with a huge recessionary crunch on the horizon, I think you're going to see more contractions (ie mergers) like this.

IMO, it's the same with MS and Yahoo. The deal sucks for both of them, but the alternative (long slow slide into irrelevance), is worse