Blockbuster's statement said it has been talking with Circuit City for months, but "Circuit City has failed to provide the due diligence necessary to allow Blockbuster to make a definitive proposal."
In a thinly veiled threat of a potential hostile takeover attempt, Blockbuster's statement said "Blockbuster is making its proposal public because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company."
Circuit City is more than twice as large as Blockbuster. The company reported some $12 billion in revenue for its last full fiscal year, compared with the $5.5 billion reported by Blockbuster for its last full fiscal year. And both companies have been struggling with profits, with each reporting losses for last year.