It looks like the potential lovefest that might have been the Blockbuster and Circuit City mashup has drifted away as quickly as it appeared. "Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City," said Jim Keyes, head-pimp at B-Buster. We can't be sure what the result was with Circuit City shareholders or employees, but we're willing to bet it didn't look anything like that Best Buy rap video. One more time, after the break.

Oddly enough, the far-fetched proposal is apt to be accepted. Circuit City has reportedly solicited the services of Goldman Sachs to help "negotiate a deal," which will essentially put the troubled electronics retailer in the hands of someone else. As it stands, Blockbuster looks to be the most interested in picking up the pieces, with billionaire Carl Icahn (Blockbuster's largest shareholder) agreeing to finance the get-together. Of course, it looks as if Blockbuster may be the only outfit interested. Not like that's any surprise, however, as Best Buy itself is having to look to Europe to boost revenues with US consumer spending off from where it once was. The real question here is whether a Circuit City-Blockbuster combo would be the perfect concoction to turn things around for both flagging firms, or will we find that two sinking ships actually do go down faster when anchored to one another?

Just weeks after the rental giant announced an expanded dedication for Blu-ray and even tried selling HDTVs in a test location in Dallas, now the firm is attempting to boost profits by digging into the surging video game market. Presumably in hopes that rental junkies and casual gaming fans alike will actually venture into Blockbuster in order to buy their next Wii, DS, Xbox 360 or PlayStation 3, the outfit has announced a new focus that will push the retail video game / game hardware aspect in all of its US-based corporate-owned stores. This includes consoles, a more fleshed out array of games and all the accessories your wallet can handle. Heck, it's even offering up an exclusive 40GB PS3 bundle ($499.99) with the Spider-Man 3 Blu-ray Disc, a PS3 remote, Transformers (the game) and a rental card giving purchasers a free PS3 game / BD rental per week for 12 weeks. Color us completely enthralled.

[Via Joystiq, image courtesy of Portfolio]

Huh? Blockbuster just made public its February 17th offer to purchase Circuit City for $6 to $8 per share. As of this morning, Circuit city has not provided the requested due diligence necessary to move the deal forward. As such, Blockbuster is pulling a Microsoft and making the proposal public in hopes of inciting shareholders. They've even gone so far as to publish an open letter from Blockbuster CEO Jim Keyes to Phil Schoonover, CEO of Circuit City. Really, is this how all corporate affairs will be conducted in the future guys? What really boggles the mind though is Blockbuster's quest for even more brick-and-mortar as digital downloads begin to take off. Hit the read link for the full contents of the letter.

[Via I4U]

The Hollywood Reporter is stating in no uncertain terms that Blockbuster is developing a set-top box to stream video into the home. Now the real bombshell: it should be announced "sometime this month." The device is expected to make the most of Blockbuster's access to Movielink's 6,000 strong Movie catalog just as soon as the content is migrated to Blockbuster.com (sometime before June). While delivering movies into the home electronically certainly challenges Blockbuster's brick and mortar business, really, what choice do they have in the relentless face of progress.

Apparently Blockbuster Video is wooing mobile device makers in an attempt to make mobile video content consumption a little easier on the consumers. While no names were specifically mentioned, Blockbuster CEO James Keyes did say that they were in talks with virtually all major handset manufacturers. We've no clue how the vids will be delivered if this gets off the ground, but wouldn't be too averse to downloading flicks on the device if the file size -- and data tariffs -- could be kept sane. Mr Keyes went on to say that he's started watching films on his BlackBerry thanks to a little technical help from a Blockbuster employee and from Jim Balsillie, co-CEO of Research in Motion. Of course, we're sure the technical help mentioned didn't have anything to do with DVD Decrypter and the illegal copying of DVDs, right guys?

We heard it was going to happen, and it did: Blockbuster bought Movielink for an undisclosed sum, surely to compliment its online offerings to better compete with arch-nemesis Netflix in the internet movie distribution game. And surely if it did sell for the piddly $50 mil figure being tossed around before, the barrier to this entry is just a drop in the bucket for the big blue movie rental giant.

[Thanks, Philip]

Like so many other hyped patent lawsuits before it, the Netflix / Blockbuster suit ended today with the relatively quiet announcement that both parties have settled out of court for undisclosed terms. You might remember the two rental giants taking each other to court last year -- Netflix claimed that Blockbuster had violated its business method patent for online rental services, and Blockbuster claimed that Netflix hadn't properly disclosed prior art in its patent applications. As always with these settlements, neither party is conceding anything, so it looks like Netflix gets to hold onto those patents, and Blockbuster gets to keep letting people rent movies online. At least the lawyers got something out of it.

In a huge blow to Toshiba, Universal, and the rest of the HD DVD devotees, rental giant Blockbuster has decided to stock only Blu-ray discs in the vast majority of its nationwide locations, although HD DVD titles will continue to be offered online and in the 250 (out of 1,450) stores that have been testing both formats since last year. Blockbuster VP Matthew Smith revealed to the AP that the decision to go with Blu-ray -- which will reportedly be announced tomorrow -- stemmed from an overwhelming customer preference for those titles in the test markets, accounting for over 70% of all HD discs rented. Interestingly enough, it seems that content -- and not price -- was the deciding factor for consumers, with Blu-ray-only hits such as the Spiderman and Pirates of the Caribbean films apparently outmatching equivalent HD DVD exclusives. While it's still a little too soon to declare Blu-ray the outright winner, this Blockbuster decision only contributes to the momentum that Sony's darling has had of late -- momentum that at this point, might be too difficult for the other guys to counter.

[Via AVS Forums, thanks Simple Panda]

Wouldn't these two be a pair, teamed up against Blockbuster's video rental service and the iTunes gorilla? Wall Street seems to think so, and rumors today of Amazon having plans for acquiring Netflix sent shares of the former to heights not seen since 2004. Unfortunately, the fun didn't last long, with Netflix quickly calling it "rumors or speculation," and Amazon defining it as "speculation and rumor." But, like Silicon Valley analyst Rob Enderle states: "If they're not talking, they probably should be."

[Via El Reg]

It ain't announced until it's announced, but the same Lionsgate CEO (Jon Feltheimer) that confirmed iTunes movie downloads was apparently on a call with analysts yesterday and divulged that his business has "nearly a dozen active agreements in place for digital delivery of our content with such major players as Apple, Amazon, Microsoft, Blockbuster, Best Buy, and Wal-Mart, with more to follow." (Emphasis ours.) Not a huge surprise, being that Blockbuster is already fighting tooth and nail with Netflix, and downloads are a natural progression for Best Buy's retail services -- so unless this guy is sorely mistaken about his company's prospects, keep an eye out for Blockbuster and Best Buy to get even further into the online media game.

Here in lawsuit-crazy America there's only one thing to do if you don't like a lawsuit: file another suit, claiming that the basis for the original claim was illegitimate. That's the case with a recent filed class action lawsuit against Netflix, which argues that the company's lawsuit against Blockbuster violates antitrust law because the company fraudulently concealed prior art related to patents used to sue Blockbuster. Techdirt points out that this new lawsuit highlights prior art that Netflix knew about, but failed to include in its original patent applications, something it was required to do. Yeah, that's right, the whole affair hinges around the ineffective patenting system, which is the background for dozens of other technology related lawsuits. If this class action is successful, then Netflix will be left regretting ever filing against Blockbuster; if it's not, then the company's still got a whole lot of paperwork to do in its case against Blockbuster. As always, there's one group left lovin' the whole situation: the lawyers.

'Tis a sad day in society when nearly two months after London showed us all how a crime-free launch is supposed to go that two separate incidents involving a PlayStation 3 left one witness dead and another dazed. In a case of local bartering gone terribly wrong, a crook posing as an interested buyer reportedly snatched a PS3 without paying, and rather than listening to a witness who tried to inject reason, the culprit resorted to stabbing the man to death and darting off with the blood-stained machine. On the other side of the pond, the UK finally did fall victim to console crime, as a crazed robber entered a Blockbuster and demanded a PS3, only to find that the object of his desire was in fact "sold out." Being the bright lad that he obviously was, he hastily decided that settling for an Xbox 360, a handful of games, and a fistful of pounds would have to do. Best of all, the robber was probably able to get in a few rounds of Gears of War before needing to go underground, as the boys in blue were initially dispatched to the wrong store location while the bandit built a solid lead. C'mon folks, if you're going to steal, at least snag the one console that still isn't a common sight in retail locations -- or don't criminals understand the concepts of supply and demand?

Read - Fatal stabbing over PlayStation 3, via PS3Fanboy
Read - Crook settles for Xbox 360 over PS3, via Joystiq

Ever since it began offering consumers the then-innovative option to have their DVD rentals delivered by US mail, Netflix has been a major pain in Blockbuster's ass. And just when the retail giant finally began to leverage its brick and mortar locations to offer its own online subscribers a sweeter deal, Netflix swoops in and announces it's Watch Now feature: free streaming flicks for all. So it didn't surprise us one bit to learn that the Wall Street Journal is reporting on talks between the rental stalwart and 'veteran' download service Movielink, a deal that, if closed, would give Blockbuster easy entry into the nascent and exciting world of internet-delivered video content. Giving some weight to this rumor is the fact that BB CEO John Antioco has already expressed interest in offering a so-called 'triple-play' -- wherein consumers can get their movies in-store, by mail, or online -- along with the ongoing pressure from investor and board member Carl Icahn to return the company to its glory days. Movielink -- which is jointly owned by the major studios -- is said to be on the table for only about $50 million, although its significance to Blockbuster is probably much greater than that valuation. Watch Now, TiVo with Unbox, BTEN, and now this potential pairing -- these are exciting times, people, and once all the dust settles in this battle to pwn digital downloading, it's the end who user who's gonna benefit most.

[Via ZatzNotFunny]

Although Netflix certainly set the precedent with its online movie rental biz, has vowed to support HD DVD and Blu-ray formats, and seems to have an on-again / off-again relationship with downloadable rentals, Blockbuster is busting out a feature that Netflix isn't likely to soon match. Under the newly-unveiled "Total Access" plan, customers will not only be able to return all movies received in the mail to a brick-and-mortar location, but they'll receive "a free in-store movie rental" for their cooperation. The company is hoping to break the 2 million member mark by year's end, and also reported that customers who opt to return their flicks in-store should receive their next movie mailing about "a day faster than if they had returned it through the mail." While we're not sure if every single in-store return will yield yet another free rental (or if it's another "one per month" deal), we're not going to grumble over anything gratis.