RadioShack trying to court buyers?
One of the last surviving consumer electronics retailers, RadioShack, is looking to court a buyer as they are “exploring strategic alternatives.” Reports speculate that there could possibly be a merger with Best Buy that would focus on one key growing segment that continues to show some growth during these tough economic times. Fundamentally, all things ultimately point to the mobile phone market in RadioShack's bid to find a potential buyer. Obviously the two companies are direct competitors with one another as they both heavily sell mobile phones – and it looks like Best Buy would definitely make out in a possible merger with RadioShack. There's no denying Best Buy's aggressive expansion with their Best Buy Mobile sub-brand that rolled out back in 2007 and has easily transitioned to each of their stores throughout the country. Currently there are approximately more than 70 Best Buy Mobile standalone stores, but that still doesn't compare to the sheer amount of RadioShack stores found in malls and smaller markets. With the business in mobile phones and small gadgets still expected to be big, the merger between the two retailers would provide them some leverage when it comes to profits and better deals in contract terms between wireless carriers. When you look at it right now, Best Buy and RadioShack plays offers some decent prices on its selection of mobile phones with instant rebates as opposed to the mail-in-rebates offered by carrier branded stores.