RadioShack exploring sale or merger with Best Buy?

By on March 26, 2010, 5:32 PM
Yet another electronics retailer might be on its way out, as RadioShack explores "strategic alternatives," including a possible sale of the company. Source familiar with the matter say Best Buy could potentially acquire the chain as it attempts to meet a growing demand for smartphones and other wireless gadgets, such as tablets, which are supposed to explode onto the scene this year.

Although it's still very early in the process, some estimate that RadioShack could fetch around $3 billion in a sale. Even so, sources say the start of an auction is still weeks or even months away. It was also noted that RadioShack might also use its remaining $900 million in cash to initiate a "massive share buyback," or even make an acquisition of its own.

A RadioShack representative declined to comment on market hearsay, while Best Buy hasn't responded at all.

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