Blockbuster announced that it is pleased with Circuit City’s decision to allow the company to conduct due diligence in preparation for a possible bid. Blockbuster had previously offered to buy Circuit City for at least $6.00 per share in cash. The absence of due diligence earlier hampered any concrete offer.

“We are pleased to have reached an agreement with Circuit City to conduct due diligence and further explore a possible merger between our two companies. We continue to believe this combination would create significant cost and operating synergies therefore unlocking substantial value for our shareholders. While it is our hope that the due diligence process will reinforce both the strategic and financial rationale behind the deal, we are committed to only doing a transaction that provides substantial benefits for our shareholders.”

Related posts:

1. Blockbuster wants to buy Circuit City
2. Circuit City teams up with Napster for new digital music service
3. It’s closing time for 155 Circuit City stores
4. Circuit City gets social for the holiday season with Pluck
5. Circuit City files for bankruptcy

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