Rumors have been circulating that the company has been in talks with device-makers, collaborating on a living room box that downloads and plays movies. In the U.S., 95 percent of Circuit City's 682 stores are within 5 miles of a Blockbuster outlet.

In a conference call with investors, Keyes called the combined company 'the ultimate distribution channel for digital content.' Keyes offered vague insight into what he called a content-enabled device that the combined entity might sell to consumers along with Circuit City's TVs, DVD players, and gaming devices.īlockbuster, the Dallas, Texas-based movie rental and retail company operates over 6,000 stores in the U.S. 'The combination of Blockbuster and Circuit City will result in an $18 billion retail enterprise uniquely positioned for the convergence of media content and electronic devices,' Keyes wrote. The offer was initiated in a private letter from Blockbuster CEO Jim Keyes, sent to Circuit City CEO Philip Schoonover in mid-February. revealed Monday that it has made a $1.3 billion offer to purchase struggling big-box electronics retailer, Circuit City to set in motion a plan to sell devices that can be preloaded with or preconfigured for Blockbuster movies.

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