Blockbuster offers to buy Circuit City for $1 billion

The actual price would be somewhere between 1 and 1.3 billion dollars, but that's still a lot of coin. Both companies are suffering, and both companies could probably use the boost that this would offer to each of them so it's a wonder why Circuit City has been sitting on its hands with this offer since February 17th.

Circuit City posted a $200 million loss towards the end of 2007. Blockbuster is constantly battling Netflix, as well as its other Brick and Mortar competitors and the loss that online movie download services have brought the company.

Together they would make an $18 billion a year company and both would likely save money from the several synergies they could create, especially the fact that they'd be able to combine the video purchasing efforts from their suppliers. Furthermore, if Blockbuster does in fact come out with a set top box, Circuit City would be the perfect platform to launch such a product.

[via Crave]