Staples Agrees to Buy Office Depot for About $6.3 Billion
Source: Bloomberg
by Allison Prang & Renee Dudley
Staples Inc. announced plans to buy Office Depot Inc. for about $6.3 billion, forging a deal that will reduce the U.S. office-supply industry to a single major chain and test the limits of antitrust regulators.
Office Depot shareholders will get $7.25 in cash and 0.2188 of a share in Staples stock at closing, the retailers said in a statement Wednesday. The price represents a premium of 44 percent over Office Depots closing share price on Feb. 2.
The two companies, which agreed to the merger after pressure from activist investor Starboard Value, would create a retail chain with about $39 billion in revenue and thousands of stores. The move is expected to draw scrutiny from the Federal Trade Commission, though regulators have been increasingly willing to approve retail mergers in light of burgeoning e-commerce competition.
The competitive environment has changed, but the government will look carefully into the effects on prices, said Erik Gordon, a professor at the University of Michigans Ross School of Business. The merger is a game changer.
FULL story and video at link.
Read more: http://www.bloomberg.com/news/articles/2015-02-04/staples-to-buy-office-depot-in-deal-valued-at-6-3-billion
Doesn't R money's old company own Staples
NYC_SKP
(68,644 posts)Hell, I miss the good old days of family-owned office supply stores in every town.
http://storyofstuff.org/
http://storyofstuff.org/movies/story-of-change/
Auggie
(31,186 posts)malthaussen
(17,216 posts)During the recent snow panic, there was an article posted about how "life goes on" in urban neighborhoods because these areas have small groceries and other stores on every street corner. Yet outside the city limits, the trend is towards more centralization, reduction of competition, and massive box stores. Seems like the weather only matters in town.
-- Mal
NYC_SKP
(68,644 posts)Original citizens, be they native americans or immigrants or just smaller communities or tribes, have historically had a smaller net of interdependence, and that net also informed and formed the culture.
Everybody cared about everybody and could depend pretty much on everyone else.
It's far different now, everybody "pretends" to be independent, with our fences and walls and people without faces with whom we entrust our health, our finances, child care.
It's the corporate model, and it will die under its own weight.
onehandle
(51,122 posts)Trying to imagine our storeless future.
Pretty sure only ultra-high end retail will be the only kind to survive. And those will be within gated, one percenter only shopping centers.
The future sounds jobless.
HomerRamone
(1,112 posts)mwooldri
(10,303 posts)I like online shopping but sometimes you cannot wait their turnaround times - especially if the item you're purchasing is being sold to you from a company in Guangzhou or Shenzhen and they're shipping it China Mail.
Radioshack has effectively gone. Now one major office supplies store chain left. What's left? Wallyworld for everything?
still_one
(92,394 posts)PSPS
(13,614 posts)still_one
(92,394 posts)I guess the Comcast and Att deals will go through too
PSPS
(13,614 posts)Staples Inc. announced plans to buy Office Depot Inc. for about $6.3 billion, forging a deal that will reduce the U.S. office-supply industry to a single major chain and test the limits of antitrust regulators.
Who are they kidding. Antitrust regulation became passe with saint raygun.
olddots
(10,237 posts)Nothing is too too big to fail , Staples wasn't built in a day but it could close over night .
niyad
(113,552 posts)bain-owned staples.
malthaussen
(17,216 posts)Joke. Monopolies are the natural outcome of capitalism. Where's Teddy Roosevelt when we need him?
-- Mal
former9thward
(32,077 posts)Every mortar and brick store including Office Depot and Staples would differ with you.
TygrBright
(20,763 posts)Delphinus
(11,840 posts)not happy to hear this.
NCjack
(10,279 posts)reduction in jobs.
former9thward
(32,077 posts)Did not know that.
Skittles
(153,193 posts)would prefer to have BOTH
former9thward
(32,077 posts)Please read what you posted. Staples is not going to wipe out the internet.
Skittles
(153,193 posts)former9thward
(32,077 posts)I would not want you to exert your brain. Strokes and all that ...
Omaha Steve
(99,708 posts)Last edited Wed Feb 4, 2015, 08:40 PM - Edit history (1)
http://www.democraticunderground.com/10141006215
benz380
(534 posts)He said after Staples and Office Depot merge, the company is going with a 3rd party courier service.
chillfactor
(7,584 posts)I hate Staples ... clerks very rude and crabby....