This is going to be a huge drain on the company. Buy Costumes had sales of around 50 million last year due to extremely high advertising costs. It is another eToys in the making! Also there will be a lot more compitition in the online costume business soon. Terrible purchase. Look out for a falling stock price!
A huge drain on the company??? This is the company that owns QVC and is the largest shareholder in IACI and EXPE. QVC shucks off huge amounts(read billions) of cash, as do the others(which aren't consolidated). Personally, I think its a good fit. I don't know what the purchase price was, but as for advertising costs affecting margins, the vertical integration with QVC should do wonders. And I think that costumes, while not lucrative, fit well with the QVC demographic. Actual operating costs of the buyseasons business should be negligible given its virtual business model.
Well, maybe they have a Warren Buffet costume in stock that Malone can wear. He's been a complete bust trying to emulate Buffet on Wall Street, maybe he can at least dress up like him and get some free candy on Halloween.