backtop


Print 9 comment(s) - last by brett3303.. on Aug 1 at 12:16 PM


  (Source: Wordpress)

  (Source: TmoNews)

  (Source: Ventura Weekly)
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. 



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: <no subect>
By vapore0n on 7/13/2010 8:51:41 AM , Rating: 3
4 is actually faster than 3, and b is to a.
I dont see why TMobile not having 4G is such big problem. The other telco companies are just starting to offer it and its still in its infancy and in very limited markets. TMobile does have HSPA+ to compete.


RE: <no subect>
By Scabies on 7/13/2010 12:32:09 PM , Rating: 2
busted: 802.11a is faster than 802.11b, but at a higher price point.


RE: <no subect>
By brett3303 on 8/1/2010 12:16:46 PM , Rating: 2
The 4G thing is all hype as in reality Sprint is not 4G its 3.9 and that is really is not the point. Now I am not a Tmoible fan but to defend them there 3G hspa is really faster than Sprints 4G in a side by side comparison at this point. Before you say no its not I have seen the test with reps from both companies in the side by side test. But 4G wins because of the impression oh it's 4G it must be better.The only reason we are seeing 4G from Sprint and Verizon first is that they are maxed out on 3G speeds and Tmo and ATT are not.Tmo and ATT have plenty of room to increase there 3G speeds. I would also like to point out that with 4G Sprint has already put a fee to have a 4G phone and Verizon has already said when LTE rolls out they will place a fee on 4G and will take away unlimited data. They will all do this because as speeds increase people will start doubling and tripling there data usage on there smartphone.


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad

















botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki