Fort Worth, Texas - RadioShack may be exploring strategic alternatives that could include a sale of the company or a merger with Best Buy, the New York Post reported today.
The story, based on unnamed banking sources, rekindles rumors from earlier this month of a pending acquisition by an equity investment firm that had largely been dismissed.
The Post reports that RadioShack has given investment bankers the go-ahead to pitch potential acquirers on a leveraged buyout of the chain. The sales process, supposedly lead by JPMorgan Chase, could bring in more than $3 billion, the sources said.
RadioShack could be seen as an attractive asset thanks to aggressive cost-cutting measures by CEO Julian Day, solid cash flow, and its strong position in the growing wireless market. Its more than 4,000 small-format stores would also play into Best Buy's mobile strategy of rolling out freestanding, mall-based wireless shops.
Other options for the chain could include a massive share buyback or even a strategic acquisition of its own, funded by its $900 million war chest, a Wall Street banker told the newspaper.