Published:
Blockbuster Comments on the Due Diligence Agreement Reached With Circuit City
Blockbuster Comments on the Due Diligence Agreement Reached With Circuit City
DALLAS, May 9 /PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE: BBI)
issued the following statement today in response to the announcement by
Circuit City Stores, Inc. (NYSE: CC) that it has agreed to allow Blockbuster
to conduct due diligence in preparation for a possible bid for the company.
Blockbuster had previously offered to acquire Circuit City for at least $6.00
per share in cash, subject to due diligence.
"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."
About Blockbuster
Blockbuster Inc. (NYSE: BBI)(NYSE: BBI.B) is a leading global provider of
in-home movie and game entertainment, with more than 7,800 stores throughout
the Americas,Europe,Asia andAustralia. The company may be accessed
worldwide at www.blockbuster.com.
Forward Looking Statements
This release includes forward-looking statements related to our operations
and business outlook, our financial and operational strategies and goals, and
our financial and operational strategies and goals for the combined company.
Specific forward-looking statements can be identified by the fact that they do
not relate strictly to historical or current facts. These forward-looking
statements are based on management's current intent, belief, expectations,
estimates and projections regarding our company, our industry and the proposed
combination with Circuit City. These statements are not guarantees of future
performance and involve risks, uncertainties, assumptions and other factors
that are difficult to predict. Therefore, actual results may vary materially
from what is expressed in or indicated by the forward-looking statements.
Factors that may cause actual results to vary materially include, among
others: (1) consumer appeal of our existing and planned product and service
offerings, and the related impact of competitor pricing and product and
service offerings; (2) overall industry performance and the accuracy of our
estimates and judgments regarding trends impacting the home video industry;
(3) our ability to obtain favorable terms from suppliers, including on such
matters as copy depth and uses of product; (4) the studios' dependence on
revenues generated from retail home video and their related determinations
with respect to pricing and the timing of distribution of their product; (5)
the variability in consumer appeal of the movie titles and games software
released for rental and sale; (6) our ability to comply with operating and
financial restrictions and covenants in our debt agreements and any adverse
publicity relating thereto; (7) our ability to respond to changing consumer
preferences, including with respect to new technologies and alternative
methods of content delivery, and to effectively adjust our offerings if and as
necessary; (8) the extent and timing of our continued investment of
incremental operating expenses and capital expenditures to continue to develop
and implement our initiatives and our corresponding ability to effectively
control overall operating expenses and capital expenditures; (9) our ability
to effectively and timely prioritize and implement our initiatives and to
timely implement and maintain the necessary information technology systems and
infrastructure to support our initiatives; (10) our ability to capitalize on
anticipated industry consolidation; (11) the application and impact of future
accounting policies or interpretations of existing accounting policies; (12)
the impact of developments affecting our outstanding and any future litigation
and claims against us; (13) shifts in strategy in connection with recent
changes in the composition of our key management; (14) our ability to achieve
the revenue and cost synergies in a combination with Circuit City, including
as a result of the factors outlined above, (15) the availability and nature of
financing for our proposed combination with Circuit City and (16) other
factors, as described in our filings with the Securities and Exchange
Commission, including the factors discussed under the heading "Risk Factors"
in our annual report on Form 10-K for the year ended January 6, 2008. This
cautionary statement is provided pursuant to Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-
looking statements in this release are made only as of the date hereof and we
undertake no obligation to update publicly any forward-looking statement for
any reason, even if new information becomes available or other events occur in
the future.
CIRCUIT CITY SHAREHOLDERS ARE URGED TO READ ANY PROXY STATEMENT REGARDING
THE PROPOSED TRANSACTION IF AND WHEN IT BECOMES AVAILABLE BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION. BLOCKBUSTER AND ITS DIRECTORS AND EXECUTIVE
OFFICERS MAY BE DEEMED TO BE PARTICIPANTS IN THE SOLICITATION OF PROXIES IN
RESPECT OF THE PROPOSED TRANSACTION BETWEEN CIRCUIT CITY AND BLOCKBUSTER.
CIRCUIT CITY SHAREHOLDERS WILL BE ABLE TO OBTAIN A COPY OF ANY PROXY
STATEMENT, AS WELL AS OTHER FILINGS CONTAINING INFORMATION ABOUT THE PARTIES
(INCLUDING INFORMATION REGARDING THE PARTICIPANTS IN THE PROXY SOLICITATION
AND A DESCRIPTION OF THEIR DIRECT AND INDIRECT INTERESTS, BY SECURITY HOLDINGS
OR OTHERWISE), FREE AT THE SEC'S WEBSITE AT WWW.SEC.GOV OR FROM BLOCKBUSTER AT
WWW.BLOCKBUSTER.COM.
SOURCE Blockbuster Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Tags: Games, Multimedia, Banking and Finance, texas
_ _Is your favorite bookmark site missing?
Ask for it.
Search News
Daily News
