Sep
01
How will Blockbuster benefit if they buy Circuit City with money they don’t have?
Filed Under (Shopping) by admin
circuit city
Ackley J asked:


I mean looking at buying the Circuit City stock but what I’m trying to figure out is how in the world is Blockbuster going to benefit from this takeover?

Walter
Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Bumpzee
  • del.icio.us
  • Facebook
  • Furl
  • Mixx
  • NewsVine
  • Reddit
  • StumbleUpon
  • YahooMyWeb
  • Google

  • If Circuit City goes out of business will I get any money?
  • Will Circuit City refund my money for my broken iriver T10 without a warranty?
  • Should I use my Circuit City gift cards before they go out of buisness?
  • Are you looking for a TV?
  • The Advantage of Going To A Perfume Shop
  • Does circuit city accept laptop trade-ins? If so, do they take a discount off of a new laptop?
  • What will happen to my PC warranty through Circuit City now that it is closing?

    • Comments

    J C on 2 September, 2009 at 3:54 am #

    The revenue they get from the new business will exceed (if things go according the plan) the the cost of the money they will have to borrow to acquire the company. So say they borrow $1bil at a total cost of 7.00% annually, they will need to make more than $70 million each year to cover the cost of financing in order to benefit.

    That’s the hypothetical, but your question seems to be more focused on the business realities. So I’m sure I didn’t get best answer!


    Brutus on 5 September, 2009 at 4:31 am #

    Blockbuster isn’t buying Circuit City, Best Buy is.