Amazon and Sprint in talks over buying Radioshack

Published: February 4, 2015 6:46 AM /


Radioshack Closing

While they are still in talks, word on the street is that Amazon is in talks to buy some of Radioshack's stores.

The possible move, discussed as part of RadioShack’s looming trip to bankruptcy court, would represent Amazon’s biggest push into traditional retail.
However, these are only talks at the moment and may not even signal the end of Radioshack. Sprint has been looking to buy a number of Radioshack stores, perhaps even half of them.
As part of the negotiations, Sprint and RadioShack have discussed co-branding the stores, two of the people said. Liquidation isn’t inevitable: It’s possible that another bidder could emerge that would buy RadioShack and keep it operating, the people said. Amazon’s talks also may not lead to a deal.
Amazon has been pushing their brand hard, with hardware such as the Kindle and Fire. Those products however are in direct competition with companies such as Apple and Samsung. Apple has the Applestore in the malls. Samsung has the Samsung Experience Shop at Bestbuy. Having its own on the ground footprint for its customers could be a big boon for Amazon.

As for Radioshack, it has been nothing short of a disaster for the company's fortunes.

In a sign of RadioShack’s escalating woes, the New York Stock Exchange said Monday it would suspend trading of the stock immediately. The exchange took the step after RadioShack failed to submit a business plan that would address its lack of compliance with NYSE rules. Companies listed on the exchange are required to have an average market value of at least $50 million for 30 straight days or shareholder equity of that amount.
Whether Radioshack survives or not is no longer the question. The real question is what can be salvaged from its departure. If the talks are successful, a very interesting future may be in store for how we traditionally see Amazon.

What is your take? Should Amazon and Sprint buy up Radioshack's stores? Should Amazon emulate Apple and Samsung? Do you still go to Radioshack? Sound off in the comments below.

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