RadioShack (RSH +4%) is said to be getting closer to selling itself, with rival Best Buy (BBY)...


RadioShack (RSH +4%) is said to be getting closer to selling itself, with rival Best Buy (BBY) among the potential buyers and JPMorgan (JPM) selected to lead the sale process. RadioShack and Best Buy declined to comment.

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Comments (2)
  • inthemoney
    , contributor
    Comments (997) | Send Message
     
    RSH has been up what 400% since the low? And Best Buy didn't want them abck them but they would buy them now at $20+ per share? I'd say - bull, it is just another "rumour" to goose a junky stock higher.
    19 Apr 2010, 08:31 AM Reply Like
  • billddrummer
    , contributor
    Comments (1761) | Send Message
     
    I agree with inthemoney. BBY buying RSH at this point doesn't make sense.

     

    But you can't argue with the fact that corporations make decisions that don't make sense.

     

    BBY has already announced it wants to open 1000+ Best Buy Mobile standalone stores.

     

    RSH would provide a complementary platform for that.

     

    I personally think that it is premature to look for BBY to open that many standalone mobile stores at once, which works against the idea that the RSH-BBY combo makes a good strategic fit.

     

    The recovery is still too tenuous now to expect a combo like this.

     

    Unless management is on some acquisition binge.

     

    Which doesn't make financial sense, let alone operating sense.
    19 Apr 2010, 09:53 PM Reply Like
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