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Blockbuster has offered to buy CE retail giant Circuit City for about $1 billion to $1.3 billion in cash.

That's according to an article by Reuters.

The video rental company says it made the offer in February in a letter to Circuit City CEO Philip Schoonover.

But thus far, Blockbuster says Circuit City has failed to provide "due diligence," corporate speak for agreeing to begin considering the proposal.

Blockbuster's unsolicited bid for Circuit City could signal the company is moving towards a new direction. Concerned by new emerging services such as Video on Demand and digital downloads, the retailer could be shifting focus to selling TV-related hardware and software rather than relying on video rentals.

The company recently announced that it's expanding the number of stores that will both sell and rent Blu-ray high-def discs, a new category that will compete with VOD and downloads.

Blockbuster CEO Jim Keyes said the Blockbuster-Circuit City joining would create "the most convenient source for media entertainment."

Circuit City has been rumored as a takeover target for months due to declining profits.