There are some valuable lessons on M&A to be learned from the fall of Blockbuster. They failed to recognize the changes that were occurring in their space, and missed opportunities that could have transformed the business. Ive always felt the two things that kill more M&A deals than anything are ignorance and greed. Dont be guilty of either, and position yourself to seize the moment when it comes. Sometimes you only get one chance in the M&A world.
See The Technological Stabbing of Blockbuster, an interesting article at Private Equity Professional Digest.