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Wednesday, July 02, 2008

Blockbuster Withdraws Proposal to Acquire Circuit City

image In the mid of April 2008, Blockbuster Inc. made an unsolicited, non-binding proposal to acquire all of the outstanding shares of Circuit City for at least $6.00 per share in cash.

However Blockbuster Inc. yesterday announced that it has decided to withdraw its proposal to acquire Circuit City.

"Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City," said Jim Keyes, Blockbuster Chairman and CEO. "We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand. We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment."

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