financial performance of the two companies, Blockbuster said.
The deal would allow Blockbuster to open up new avenues of distribution to better compete with rival Netflix, whose clients order rental discs on the Internet and receive them by mail.
Circuit City's share price has fallen 80 percent over the past year amid fierce competition with Best Buy and other electronics retailers. Circuit City reported a $319.9 million net loss for the year to Feb. 28, as its sales dropped 5.5 percent to $11.74 billion.
Blockbuster initially made the cash offer directly to Circuit City chairman and CEO Philip Schoonover in a letter dated Feb. 17, it said. But Circuit City has not allowed Blockbuster to perform the due diligence necessary to make a it...