I really thought this was a joke when I read it this morning. Blockbuster bids $1.35 Billion to buy Circuit City. I don’t need to look over any financial statements or look at any charts to know this is probably the dumbest merger idea so far this year.

 

In one corner you have Blockbuster, a dying company in a dying industry. Brick and mortar movie rentals are on the way out, On-demand/On-line are in. Then there’s Circuit City, a supposed big box store that also has small retail outlets, poor sales and poor profits.

 

So why do these companies want to merge? Convergence.

 

Yes, convergence, that happy go lucky buzz word of the early 2000s that resulted in the death of AOL. The only thing these two businesses have in common to converge on is that they both have failing models and stupid ignorant executives. Go figure.