ezequiel

Loading...
Symbols:
Authors:
comments2
  • Positive ratings 0
  • Negative ratings 0
  • Net rating 0
Filter comments by:
Highest rated Latest comments
Or filter by symbol:

Latest Comments
2 Comments

    • Tue Apr 22nd 15:40 PM
      |
      Rating: 0 0
      Commented on:
      Advice to Blockbuster: Drop the Retail Paradigm Nonsense
      In response to billddrummer:

      My mistake. I probably should have posted on a discussion board. This board is more for pushing agendas and facts are therefore not entirely important.

      You said:

      "There's no real estate to speak of in this deal. All but 5 CC locations are leased, and so are the distribution centers and the bulk of its HQ complex."

      What about the 504 Canadian stores. What about the $304M in building/land on the balance sheet and the $100M in construction in progress. Does any of this have a liquidation value. Maybe not as much as what is stated on the books, I don't know but I know there is value there -- a little more than "...no real estate to speak of...."

      I wouldn't go to CC to rent a movie either. I would buy a movie or sign up for an online subscription rental service on impulse though if I were already there.
      View article »
    • Mon Apr 21st 12:13 PM
      |
      Rating: 0 0
      Commented on:
      Advice to Blockbuster: Drop the Retail Paradigm Nonsense
      Couldn't agree less with your article. First off, I don't know what you mean by (paraphrase) -- not many ppl walking in the store. Last time I checked there was over $10B annually walking through the store. If you want to sound witty or like a genius, you don't have to exagerate the facts.

      Second, we are talking about a buyout for less than book value. I think based on that BBI is not displaying any delusions of granduer about the proposed merger. It could come down to nothing more than a real estate play for which I cannot comment on the merits or lack of merits of a company operating like investors (aka Icahn) rather than executing a business plan. That would be another topic for discussion.

      Thirdly, I don't think we are talking in absolutes here. No, not every Circuit City Store would be ideal for renting Blockbuster movies -- maybe no store would be ideal for racking out a bunch of movies but that does not mean there are no crossover opportunities. Coupling online movie rental memberships with CC purchases would be an inexpensive way of growing BBI's online movie rental business. Some, not all, BBI locations would be ideal for crossover sales of electronics. Combined there is some opportunity for cost savings in combining locations. Undesirable properties could be sold to increase cashflow.

      If we are talking about two dying companies that separately everyone is stating the writing is on the wall; it's just a matter of when they will go belly up, and if together they could delay the inevitable (buy time), why wouldn't it make sense to merge.
      View article »