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Quote:Video rental retailer Blockbuster Inc. has offered to buy consumer electronics chain Circuit City Stores Inc., aiming to take advantage of the convergence of digital entertainment content and devices best exemplified by Apple Inc.’s runaway success with the iPod music player and iTunes online music store...

Keyes painted a picture of Circuit City stores selling customers, along with extended warranties and maintenance contracts, subscriptions to movies, TV shows, video games and other entertainment content from Blockbuster. “For every customer buying a TV set or other form of consumer electronics, Circuit City now can sell a subscription service to digital content from Blockbuster.com,” Keyes said. He said Blockbuster stores also could sell a limited selection of electronics devices provided by Circuit City, and that Blockbuster could place kiosks in Circuit City stores...

Quote:Blockbuster said Tuesday it is withdrawing its proposal to buy Circuit City Stores, the big-box electronics retailer whose sales have tumbled this year. Chief executive James Keyes said in a written statement that the proposed deal, at a price of more than $1 billion, didn't make sense because of market conditions. Blockbuster shares jumped nearly 12 percent on the news, while Circuit City shares continued their fall...