Blockbuster is making significant moves to protect its core markets with news of a strategic $1.33 billion bid to buy US electronics retailer, Circuit City, and reports claiming the company plans its own 'Apple TV-killer'.
Blockbuster has offered to buy Circuit City Stores for as much as $1.33 billion in a deal aimed at taking advantage of the global trend of putting media content on electronic devices, the US.movie rental giant said Monday.
Blockbuster has offered $6 to $8 per share in cash for Circuit City, depending on the results of a check of Circuit City's books. The merger would create an $18 billion global retail company and substantially improve the financial performance of the two companies, Blockbuster claimed.
The deal would allow Blockbuster to open up new avenues of distribution to better compete with rival Netflix, whose clients order rental discs on the internet and receive them by mail.
In another attempt to preserve its relevance in a changing market, Hollywood Reporter last week made the claim that Blockbuster is searching for a hardware partner to deliver a device which (like Apple TV) facilitates streaming of films from the internet to a TV set.
A Blockbuster spokeswoman told Hollywood Reporter: "We're talking to numerous companies and vendors about products, services, alliances and initiatives that can help us achieve our mission to transform Blockbuster into a company that provides access to media content across multiple channels -- from our stores, by mail, through kiosks, through downloading, through portable content-enabled devices-- so it's not surprising that there are rumours out there."
That news emerges following previous reports Netflix plans to introduce a product manufactured by LG that offers similar features.
Blockbuster said its own turnaround strategies have been paying off. The company expects to report a first quarter net profit of $30 million, compared to a net loss of $49 million the same time a year ago.