Blockbuster Seeing what Sticks to the Wall
Ever hear the saying "throw some $#%t against the wall and see what sticks"? Thus seems to be Blockbuster's (BBI) current business plan.
After being late to the video by mail model, late to the box top set model, talking about turning their obsolete locations into Apple Stores (AAPL) like locations, and attempting a doomed from the start takeover of Circuit City (CC), Blockbuster is trying something else.
Now Blockbuster is in talks about taking a stake in the new premium TV channel to be launched by Viacom with Lions Gate Entertainment (LGF) and Metro-Goldwyn-Mayer.
Ok. Haven't we all come to the conclusion blockbuster doesn't have the financial ability to complete the proposed Circuit city deal? How do they intend on doing this also? Have you ever seen a company run in so many seemingly disconnected directions at once?
This smacks of desperation. Blockbuster could survive and even prosper and compete with Netflix (NFLX) if they would only acknowledge what everyone but them seemingly understands, they need to close their stores. Should that happen, the cash save could possibly finance one or some of the shotgun like business moves they are contemplating. They cannot, however, keep them and do the others..
I guess the only thing left to do for them is to talk about a merger with Sprint (S)?
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