RadioShack Auction: It's All About The Cash
RadioShack, the electronics retailer that sells tape recorders and phone extensions, is apparently getting lots of interest from the private equity community. At first blush, I was surprised that RadioShack still exists, let alone that it's up for sale. But it seems that more than a few folks still visit “The Shack,” given its 4,000+ retail locations and 555 kiosks. Goldman Sachs is running the auction, with suitors reported to include The Blackstone Group Bain Capital and TPG Capital. A sale could be valued at more than $3 billion. So why such interest in RadioShack? It’s the cash, stupid. RadioShack has is sitting on $872 million in net cash, says Anthony Chukumba, senior research analyst for BB&T Capital Markets.
8 June 2010•2 mins read
