With nearly 700 superstores, it's little wonder Fortune 500 company Circuit City proved attractive to one-time rental giant Blockbuster.
The plan had been to combine content and technology under one roof, but Blockbuster have pulled the plug on the $1bn deal, saying in a statement "It is not in the best interests of Blockbuster's shareholders to proceed with an acquisition of Circuit City".
Circuit City recently reported a loss of £165m in its first fiscal quarter, up $110m on last year's loss.
However, US city observers had also doubted Blockbuster's ability to come up with the $1bn needed to complete the deal. The chain has lost significant amounts of money in recent years as the competition from online rental firms, with their low overheads, hots up.
More after the break