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Academic

: Conglomerate

Time To Worry About Your Shorts on Blockbuster?

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

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We can all keep shorting Iceland - the country just got a pretty small bailout from other Scandanavian central banks. But is it time to go long on Blockbuster? The Times buried its story today on how the company just declared an increased profit, words I confess I didn't really expect to hear ever again. They did it not by renting more DVDs, although they are doing that online now, nor by getting into other rental businesses, though it appears that Grand Theft Auto IV will be good to the company, but by ... cutting administrative costs. If Fake Steve Jobs is right about the transient nature of these sorts of efficiencies, Blockbuster may not be posting increased profits for much longer.

Full post as published by Conglomerate on May 16, 2008 (boomark / email).

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