Blockbuster-Columbia House Merger?26 Sep, 2003 By: Holly J. Wagner
Although there is no official word from the parties, the Wall Street Journal reported that Blockbuster and mail-order club Columbia House are negotiating a potential merger. Blockbuster is expected to be debt-free by next year, forcing the company to decide how to invest its cash, the Journal noted. A merger would let Columbia House expand its DVD business while giving Blockbuster a stronger back-end for e-commerce and distribution. The combined database would also put both brands into more households.
Blockbuster released this statement: “We are not going to confirm or deny information reported in the Wall Street Journal. We have been on record as saying we are open to any option that improves Blockbuster's competitive position and supports the company's long-term strategic goals.”