By MERISSA MARR
April 14, 2008 9:42 a.m.
Blockbuster Inc., attempting to reinvent its outdated video rental business, has offered more than $1 billion in cash for struggling electronics retailer Circuit City Stores Inc.
Blockbuster said it made the offer of $6 to $8 a share in a February letter to Circuit City Chief Executive Philip Schoonover, but decided to go public with it after the electronics retailer refused to provide access to its books. (Read the letter.)
The acquisition is a bold move: Blockbuster would take on a troubled and loss-making company with a greater market value than its own. Blockbuster had a market capitalization of around $630 million, based on Friday's closing price.