Blockbuster has dropped its bid to buy US electronics retail giant Circuit City.
The entertainment chain, which made the offer in April, cited difficult market conditions.
"We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand," Blockbuster CEO James Keyes said in a statement.
"We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment."
Philip Schoonover, chairman of Circuit City, said his company continues to listens to other offers.
"We are diligently working with the parties involved in the process, and intend to continue our thorough approach until such point as the board determines upon a particular strategic course of action," Schoonover said.