Acquisitions

Blockbuster Inc., the largest chain of DVD and video game rental stores in the world, announced that it will not only amaze everyone with its first quarter revenue, but it would also undergo a hostile takeover bid for Circuit City Stores Inc. However, its own movie-rental business is troublesome and analysts have doubts about the deal. Chief Executive James Keyes gave some of the details concerning the fulfillment of the deal by describing a 9,300-store chain that would sell portable devices and entertainment for them with movie-rental stores inside larger Circuit City stores. In spite the fact that he joined the company only last summer, he already did some changes like buying Movielink, a digital movie-downloading service handled by major Hollywood studios. Circuit City, the second biggest consumer electronics chain in US, was forced to lay off some 3,400 workers and focus on smaller concept stores, how to reduce costs and its Firedog tech-service business due to the decline of almost $27 slide in share prices. They are looking for new means of recovering, but the deal with Blockbuster doesn't seem probable as it is way above Blockbuster's entire stock market value. Since they were approached for the first time with the offer in December, they have refused to show their books and even after the letter sent to Circuit City CEO Philip Schoonover, shareholders were advised to wait until the company board analyses the bid. The deadline for an answer was on February 21, but they did not offer any of the requested information. Keyes managed to bring some improvements to the company struggling to compete against small DVD retailers or by-mail rental services. Yet, the deal with the endangered stores-chain might be more than he could handle. The only solution is to wait and see whether he will convince Circuit City to give in or not. More to come...

related story: http://news.yahoo.com/s/ap/20080414/ap_on_hi_te/cuba_cell_phones;_ylt=Ai3NvJhgJBaUPuVS7_Vn01as0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are brought to you by CantellTV, its technology partner SigEx Telecom and its founder Chris Cantell. CantellTV is the fastest growing provider of digital broadcasting coupled with enhanced communications, allowing people to easily control, view, upload and share digital content through proprietary interface. CantellTV has relationships with a growing network of international clients delivering millions of videos per day with more than 50,000 new videos uploaded and 200 hours of new TV shows broadcasted daily to a wide range of viewers, from 5 to 7 year olds of LiveCartoons; to 16 to 24 year old active social users of MyJumps; to fortune 50 corporate clients utilizing enhanced broadcasting services. CantellTV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers. Chris Cantell retains consulting arrangements with several pre-IPO companies.


Edited by: Maria Zitnanska

Labels: Acquisitions, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom