Loaded Revulvas

Circuit City Buyout?

Circuit City is in prime location for a buyout after closing at $4.35. There’s a possible deal with Blockbuster, but even if it falls through you can expect someone to buy up Circuit City at this price.

With its prime retail locations, Circuit City would be a huge deal at this price for another company to absorb. Blockbuster is the leading interest right now, but there may be others.

Circuit City shareholders are not in a good place. It’s hard to imagine a scenario where the stock would rebound back to its old highs. Circuit City’s largest investor, HBK Investments (with a 9% stake), probably wants a deal done ASAP with a large premium for their stake.