RadioShack needs a buyer, but unlikely to find one
Posted Apr 30th 2008 2:00PM by Tech Confidential
Filed under: Deals
It looks like the
latest round of rumors that
Dell Inc. (NASDAQ:
DELL) is considering buying
RadioShack Corp. (NYSE:
RSH) are not only untrue, but probably stirred up by some unhappy shareholders of the 109-year-old consumer electronics retailer.
"I don't see any strategic buyers for RadioShack," said Anthony Chukumba, an analyst with FTN Midwest Securities who predicted a Dell acquisition is "highly unlikely." While Dell has made some uncharacteristic moves over the past year, like signing a deal last May to sell its computers at Wal-Mart Stores Inc. (NYSE: WMT) and other big-box retailers, Chukumba says the idea of buying any retailer outright, let alone the struggling RadioShack, does not compute.
"They would completely anger their partners," said Chukumba, who added that RadioShack's mostly small, mall-based stores are impractical for displaying an extensive line of PCs. "RadioShack is becoming less and less relevant as a consumer electronics retailer. I think they'll just continue to drift along."
Continue reading at TechConfidential.com.
Tags: RadioShack, RSH
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