General Comments. Wow this string woke-up. Maybe not for the good.
1) Verified with OnSale, atCost will not exist as an ongoing "brand" "symbol" whatever. The atCost concept has been folded into the Egghead Superstore section. They will advertise "wholesale prices" free shipping, etc. just like atCost did.
2) The OnSale brand is not going away. It will represent the Auction Concepts, which is what OnSale is well known for. Egghead will represent fixed price retailing as it always had.
3) Egghead had double the registered users and almost triple the online visits. Therefore the name is more well-known to more consumers than OnSale, thus the decision to change the corporate name. OnSale had double the "close" rate of it's site visitors, therefore OnSale becomes the management team.
4) Egghead only had a bad reputation among vendors and investors. As a company, it went through a number of permutations of ownership, value, bankruptcy etc.
But, the consumer never had a problem. Well-Known for low priced software, and then very competitive and well merchandised computer hardware, it was a great specialty store for computer products. But, it had too many small stores in too many expensive locations and malls, to compete in the low margin computer business. Thus, the decision to close the retail store and concentrate on Internet. Long-term, George Orban may be regarded as the forward thinking pioneer with that decision, as other "brick and mortar" retailers give up their real estate liability, altogether.
5) Best info coming out post-merger, is a strong statement as to growth, margins, and profitability in two years. What other new Internet E-Commerce is going on the line and predicting profitability????
6) I believe the gentleman who posted the conversion ratio may have been mistaken in his formula. I calculate as follows:
(1.0)EGGS (old) =.565 ONSL(old)= .565 EGGS(D)
(1.0)ONSL(old)= 1.0 EGGS(D)
(1.0) EGGS(D)=1.0 EGGS(new)
Don |
