One day after RadioShack shares shot up on rumors of an impending acquisition, the chain’s stock price returned to just above yesterday’s pre-speculative level after CNBC reported that buyout talks have cooled.
According to unnamed sources cited by CNBC’s David Faber, RadioShack’s asking price is too high and no deal is imminent.
While some analysts consider RadioShack an attractive asset thanks to its aggressive cost-cutting, solid balance sheet and strong wireless position, others take a lesser view: The chain was among 10 brands named by online investor publication 24/7 Wall St. as destined to disappear next year.
The article, which also included Blockbuster and T-Mobile, said “RadioShack has already begun to rebrand itself as ‘The Shack,’ an indication that it knows the older brand is a burden.”
