While NYSE has begun the process of de-listing the stock of RadioShack Corporation RSH, host of companies are looking to prey on the assets held by the now bankrupt company. Among them is Amazon.com, Inc. AMZN, as Bloomberg reported today in an article.
Robert Peck, Internet analyst at SunTrust Robinson, was on CNBC recently to discuss why it will make sense for Amazon to acquire some of RadioShack’s assets.
Why Would Amazon Be Interested In RadioShack’s Assets?
“We wrote a piece actually back in September,” Peck said. “We went over a couple of reasons why we thought Amazon will be interested in these assets, particularly taking over the leases to some of these stores. One is sort of obvious, you could see them demo some of their own products, whether it be Fire phones or Kindles or Fire TV or even show the Prime streaming services.”
He continued, “But the other and the big key part about is at the end of the day Amazon is really a logistics company and having these physical presences could really help them with distribution, same-day delivery, pushing further and further to local commerce.
Will Amazon Keep The RadioShack Name Or Re-Brand The Stores?
“I would guess that they would re-brand it and make it more of a distribution centre,” Peck replied. “Also, think of the concept of them having stock maybe top 100 items or so in the store, where you can really walk in the morning, pick out what you want instead of having to lug it home, they same-day ship it to your house.”
“When you get home, it’s actually waiting there for you. So, the whole logistics and same-day delivery is part of it, it’s a big part of this.”
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