"Our view of the change that's occurring in consumer electronics and the movie-rental business is one of convergence," Mr. Keyes said. He sees Apple Inc.'s stores as an example of "a user-friendly one-stop shop with solutions for the consumers" that could be a model for Blockbuster-Circuit City combination.
You have to give the Wall Street Journal some credit, at least, for reprinting the CircuitBlock = Apple concept. If nothing else it shows us that the News Corp takeover hasn't blunted the paper's sense of humor.
There are any number of things that baffle me about the proposed deal, but most can be explained away with simple two-word combinations like "last-ditch," "desperate-hours," or "spin-doctor." One that cannot is "Carl Icahn." I suppose, having a "pre-existing condition" in Blockbuster, Icahn is looking to extract as much value as possible quickly. Can you blame him?
The inability of firms to recognize the declining nature of content distribution as a business model baffles me. Moving the Blockbuster point of sale out of expensive front-line retail space and into Circuit City stores because revenue is no longer sufficient to maintain the expensive store network Blockbuster must support (6000 stores costing on the order of $1.5 billion a year) so they can move a bunch of plastic discs back and forth is not a brilliant merger plan. It is delaying the inevitable.
A Blockbuster Raid on Circuit City [WSJ]