Feeds

Circuit City runs up the white flag

Of course you can look at our books, Mr. Corporate Raider, sir

Internet Security Threat Report 2014

Circuit City's days as an independent are numbered. The ailing US electronics retailer last month received an unsolicited bid from Blockbuster, the ailing video store operator.

It was less than whelmed by the approach. But the company capitulated today when presented with Blockbuster's secret weapon: a letter from corporate raider Carl Icahn.

Icahn is a major shareholder and director in Blockbuster, and he says he will buy Circuit City himself if Blockbuster proves unable to raise financing or obtain shareholder approval for the transaction. Icahn is the world's forty-second richest man, with a net worth of $13bn. So no credit crunch there. But he wants some due diligence dalliance with Circuit City before dipping into his back pocket.

So Circuit City has duly opened its books to Blockbuster and Icahn. It says this should "not be taken as an indication that the board has completed its review of the Blockbuster proposal, that the board has taken a position on the company's value or that it has settled upon a particular strategic course of action." Gwana Gwana.

OK, so they are only at second base. And co-operation now means the avoidance of class action suits later. But Circuit City today also hired Goldman Sachs to seek "strategic alternatives to enhance shareholder value". This is code for "someone, buy us, but preferably not Blockbuster, PLEASE".

More from Circuit City here. ®

Beginner's guide to SSL certificates

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.