RadioShack: The Bidding Has Begun
It appears as though the rumors of RadioShack being up for
sale may be true as the New York Post reports that the first round of
bidding has been completed for the consumer electronics chain.
The usual private
equity suspects, Blackstone Group, Bain Capital and Kohlberg Kravis Roberts & Co.
and TPG Capital, appear to be looking at making bids for the chain as well
as one "strategic" party thought to possibly
be Best Buy.
A RetailWire poll in March found that 61 percent of respondents
thought a merger between Best Buy and RadioShack would be a somewhat or very
There appears to be quite a bit of interest in the chain, which has
focused more recently on mobile technology including opening specialty kiosks
in Target locations.
"RadioShack is an appealing opportunity for a (private-equity) firm because
it has a ton of cash, and a mobile business that is growing quickly," an
unidentified banking executive told the Post.
Discussion Questions: What’s the best case scenario for RadioShack in terms
of new ownership? If you were acquiring RadioShack, what would you do with the
- RadioShack bids in – New York Post
buyout speculation resurfaces – The Dallas Morning News