Searching for smart, safe news you can TRUST?
Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
Staples is exploring a sale to private equity, according to the WSJ. This comes after U.S. regulators effectively blocked the office retailer from acquiring rival Office Depot.
Why it's a big deal: For all of its problems, Staples remains a $6 billion company and the go-to physical source for office supplies.
Bull case: Staples stock over the past six months hasn't been this cheap since 1998. Even the takeover report couldn't push it past $10 per share.
Bear case: There are a lot of good reasons why Staples stock hasn't been this cheap since 1998, including online cannibalization (read: Amazon) and declining performance. Plus, private equity isn't exactly known to be clamoring right now for big box retailers. In other words, this reads a bit like Staples (now under a new CEO) seeking a buyer via the press.
Bottom line: "After the [Office Depot] deal collapsed, Staples said it would cut costs and redouble efforts to win more business from midsize companies. But the turnaround strategy, dubbed Staples 20/20, hasn't yielded significant gains yet." ― WSJ