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The end is near

Gizmodo's list of potentially doomed companies of 2011, which is determined by 24/7 Wall St. analysts' figures, has grown a little longer as of late. Three new additions include companies that many people have regularly attended for years: Blockbuster, T-Mobile and RadioShack. 

Movie rental store Blockbuster has been around since October 1985 and had over 9,000 stores in 25 countries worldwide, but that hasn't stopped new entertainment companies like Netflix from moving in and changing the way people watch movies, thus destroying Blockbuster's traditional movie rental model.

Blockbuster's balance sheet hasn't been looking good, either. According to 24/7 Wall St. Analyst Douglas A. McIntyre, Blockbuster lost $65 million last quarter and is now looking to file Chapter 11 in hopes of shedding their debt. Currently, there are 6,000 stores remaining after their financial troubles hit, but the good news, according to Gizmodo, is that a Netflix/Redbox hybrid could exist in the future, keeping some mail service and supermarket kiosks around.

T-Mobile is in a similar situation as Blockbuster when it comes to competition-related problems. T-Mobile's possible demise in 2011 will be due to a lack of 4G offering, which will crush them because many other carriers will have 4G, and the fact that they have a smaller customer base than several other carriers.

At one point, there were rumors of a T-Mobile/Sprint merger, which would save T-Mobile's parent company Deutsche Telekom and make them as competitive as Verizon or AT&T.  

RadioShack is another company aiming toward its potential doomsday in 2011, but their demise is nothing new or surprising. In 2006, RoadioShack closed approximately 500 locations because they made less than $350,000 in revenue annually. That same year, 400-450 corporate layoffs went into effect and the company received widespread public criticism for firing these employees by e-mail. 

More recently, in March of this year to be exact, there were reports of Best Buy looking into merging with RadioShack, but nothing more has come of this since then. According to Anthony Chukumba, analyst for BB&T Capital Markets, investors will likely be interested in

RadioShack because their balance sheet is strong. In March, the company had "$908 million in cash outweighing its $669 million in debt."

The list of familiar companies expected to go out of business due to competition and debt seems to increase more and more, and it makes one wonder if anything is going to look up in 2011. But it looks as if RadioShack, Blockbuster and T-Mobile all have alternative options to seek out before the end. 



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By T2k on 7/13/2010 12:37:05 AM , Rating: 2
...write for that crapshoot site called Gizmodo - since beginning of this year month-by-month T-Mobile USA is turning on its 21mb-capable HSPA+ towers in cities after cities.... just WTF is Gizmodo drinking?
The Sprint 4G-BS-KoolAid?
Seriously, the *promised* 4G is a pathetic joke compared to *existing* 3.5G (HSPA+, that is) speeds on T-Mobile, let alone the fact that 4G is a waaay more expensive route and it will take at least another year or two until it will be deployed nationwide and even so it won't be faster than T-Mobile's *current* 3.5G (~21Mb/s max.)

As a side note: DT said few months ago that T-Mobile USA is a cash cow and it's not for sale.

It's all about reading too much ignorant BS from clueless Wall St jockeys and then keep rolling the shitjoint on your site (Gizmodo)... all you get is a giant piece of shit in your face. :)




By rett448 on 7/13/2010 2:30:33 PM , Rating: 2
Sprint has a much higher chance of bankruptcy than T-mobile. Sprint hasnt made a profit in over two years and they are taking on a load of debt rolling out 4G. Sprint also doesnt have a large multi-national corportation as its owner.


By dubldwn on 7/13/2010 8:29:18 PM , Rating: 2
Sounds like Sprint and T-Mobile should combine and release HSPA+/WiMAX phones. Then they could easily take on AT&T and Verizon.


By sprockkets on 7/13/2010 11:00:28 PM , Rating: 2
wimax can GF itself. The rest of the world will move to REAL 4G with LTE, and sprint can burn in hell for being stupid enough to do that.


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