koolaid - you are exactly right.
Staples needs NEW leadership with new ideas.
They are in better shape than Depot but that is not saying much.
Depot lost too many top people going back to 19 years ago and they never recovered. I think at the end of the day it will be fair to say that the FTC will have put them out of business.
They have not been well managed.
Ron has not had a good idea in 5 years. Europe has been and is a mess.
No - Not well managed!!
This was the right call. A merger would have created a monopoly in the B to B segment of the commercial market. Staples never really wanted the merger but was forced into it by the hedge fund.
Even though I think it was the right call it is bad news for both SPLS and ODP
I say no merger.
At this point I think that SPLS will win the case but only because the FTC is totally inept.
Amazon is not a player today in the fortune 500 space. Becoming a big player in that space even for Amazon is no slam dunk.
The issue is and always was that if this merger happens there will be NO competition for large corperate cutomers buying general office supplies.
So Staples is offering the to sell $550 Million of sales to Essendant. This is the original deal that the Feds rejected. What on earth is Staples doing? This will never be approved!
It's called SalesForce. Their sales people are in front of a computer writing reports (fairy tales) to managment instead of making sales calls to generate business/revenue for the company.
Moral at Staples is ZERO!
The stock is fairly priced. The office supply business is in decline. Paper / Toner in decline. General office supplies in decline at least 5% per year. So absent a merger SPLS is going nowhere but down. Short term traders might catch a couple of pops if you get in and out at the right time but long term all bad news. Especially with the stale Staples management team.
They are not going BK but the prospects for them into the future does not look good. Their base business in office supplies, paper,toner is in decline. I think the stock price is about where it should be. This was a great company. It is still a good company but desperately needs new leadership.
It had a chance but Staples did not offer enough to satisfy the FTC that there would be competition. The funny thing is that Depot is a crippled company at this point and I don't see how they survive.