May Be Split from Sam Goody
Posted by ICv2 on April 8, 2003 @ 11:00 pm CT

Video Business, in an article in its April 7 print edition, quotes speculation from stock analysts that Blockbuster may end up buying the Suncoast video chain in a break-up of the Musicland assets currently being shopped by Best Buy (see 'Best Buy Shedding Musicland'). Blockbuster has the cash and is looking to expand its retail operations. And Musicland may not be salable as a whole; the music business is poor, making its Sam Goody chain less desirable, and Suncoast is the part of the business with the best cash flow. Best Buy may end up having to shut down part or all of Sam Goody and take what it can get for the salable parts of the three businesses (Sam Goody, Suncoast, and Media Play).
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