Amazon in talks to buy RadioShack stores in bid to better compete with AppleBy Shawn Knight 9 comments
Amazon has reportedly entered into discussions to buy up some of RadioShack's soon-to-be-abandoned brick-and-mortar retail stores.
Two people with knowledge of the matter told Bloomberg that Amazon is interested in using the stores as showcases for various products. The locations could also serve as potential pickup and drop-off centers for online shoppers.
RadioShack currently has more than 4,000 retail locations in the US. If Amazon was able to secure even a portion of those, it'd help the company level the playing field against rival Apple. The Cupertino-based company currently operates hundreds of retail stores, most of which are located in prime retail shopping districts.
The idea may seem far-fetched at first but the reality is that Amazon has several products it could display prominently in retail stores. Examples include, but not limited to, its Kindle line of e-readers and tablets, set-top boxes like the Fire TV and Fire TV Stick, the Fire Phone and even the new Echo personal assistant.
As for RadioShack, the New York Stock Exchange has suspended trading of the company's stock after it failed to submit a plan on how it would realign itself with the exchange's rules. As per NYSE rules, a company must have an average market value of at least $50 million for 30 straight days or have shareholder equity of that amount.
RadioShack has seen 90 percent of its value diminish over the past year, closing at just $0.24 per share yesterday.