Blockbuster Takeover Circuit City?

The old man brought it up this morning. From Variety, Blockbuster are buying up Circuit City since there in financial debt.

Struggling vidtailer Blockbuster revealed a surprise proposal to acquire
electronics chain Circuit City, only to see its stock drop 10% Monday as Wall
Streeters tried to make sense of it.

The cash offer of between $6 and $8 a share, made Feb. 17, is only now
becoming public, according to Blockbuster, because the company wants Circuit
City shareholders to have an adequate chance to weigh in.

While it is typical for the stock of an acquiring company to suffer a
penalty on takeover news, Blockbuster shares were hit hard, finishing at $2.81
after establishing a new 52-week intraday low. Circuit City’s similarly battered
shares ended the high-volume day up 27% to $4.97.

My intial thought was why not have the two companies work hand in glove, combined the best of both worlds, more movies and the electronics? But I understand where there coming from, Circuit City is probably in a pickle cause there sells have dropped alot.