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Hot Issue: Consolidation

4/15/08
Is the Proposed Circuit City Deal a Blockbuster?

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To most everyone this side of Edward Lampert, the combination of one poorly performing company with another adds up to a really bad deal. Evidently, Blockbuster CEO Jim Keyes counts himself among the Lamperteers who believe that zero plus zero adds up to something more than nothing. How else could you explain his company's unsolicited $1 billion-plus bid for the struggling Circuit City consumer electronics chain? What is your reaction to Blockbuster's proposal to acquire Circuit City?

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