Blockbuster launched a surprise $1 billion bid for sagging electronics retailer Circuit City in mid-April. Blockbuster, which has suffered as mail DVD services and on-demand video have taken a bite out of the home movie rental market, is making an ambitious play to forge a new future for the firm. The deal is based on the premise that the future of “consumer electronics and the movie-rental business is one of convergence.” Circuit City operates 680 stores, but has been losing money in recent months as the electronics market stumbles and it searches for an identity in a market where it's trailed the success of Wal-Mart and Best Buy.