Statement from Blockbuster here. They’re going public with the offer because Circuit City won’t open its books. So, looks like one piece of shit without a future clutching desperately at another in an effort to stave off the inevitable for a bit longer. This is almost as bad as Sears and K-Mart.
I can’t think what they would propose to do together. Both of them are just retail outlets, so it’s not like they have a hardware RD department somewhere working on the next thing since Apple TV.
How about DIVX 2.0? 
I suggest we revive the expression “dinosaurs mating” for this occasion. I’ve always felt it captured the sense of ponderous futility very nicely.
I cannot imagine how Blockbuster can possibly survive. Some sort of video on demand will kill them off at one point or another.