rowley@ORVILLE.ARPA (Karl Rowley) (08/24/87)
I heard on the radio news this morning that Atari was buying Federated Stores. Anybody know anything about this? Karl Rowley rowley@orville.nas.nasa.gov WARNING: I am only reporting what I heard. However, Jack has been known to do the unexpected.
cmcmanis%pepper@Sun.COM (Chuck McManis) (08/25/87)
In article <8708241755.AA18954@orville.arpa> (Karl Rowley) writes: > I heard on the radio news this morning that Atari was buying Federated > Stores. Anybody know anything about this? This would be quite interesting if true. I don't think it is because of two aspects of the situation. First, Federated (at least here in Sunnyvale) sells the Amiga rather than the ST. Thus, it would seem to open Atari up for lawsuits from Commodore about predatory trade practices etc, etc. Second If Atari goes out and spends a bundle buying a retail chain that sells TV's and Stereos their users are going to be royally pissed. Would you rather have Jack spend it money on a retail chain you probably never heard of, or getting the bugs out of GEMDos ? Nope, I don't think it is true. --Chuck McManis uucp: {anywhere}!sun!cmcmanis BIX: cmcmanis ARPAnet: cmcmanis@sun.com These opinions are my own and no one elses, but you knew that didn't you.
dragon@oliveb.UUCP (Give me a quarter or I'll touch you) (08/25/87)
in article <26410@sun.uucp >, cmcmanis%pepper@Sun.COM (Chuck McManis) says: > In article <8708241755.AA18954@orville.arpa > (Karl Rowley) writes: > > I heard on the radio news this morning that Atari was buying Federated > > Stores. Anybody know anything about this? > This would be quite interesting if true. I don't think it is because of > two aspects of the situation. First, Federated (at least here in Sunnyvale) > sells the Amiga rather than the ST. Thus, it would seem to open Atari up > for lawsuits from Commodore about predatory trade practices etc, etc. Second > If Atari goes out and spends a bundle buying a retail chain that sells TV's > and Stereos their users are going to be royally pissed. Would you rather have > Jack spend it money on a retail chain you probably never heard of, or getting > the bugs out of GEMDos ? Nope, I don't think it is true. > --Chuck McManis > uucp: {anywhere}!sun!cmcmanis BIX: cmcmanis ARPAnet: cmcmanis@sun.com > These opinions are my own and no one elses, but you knew that didn't you. Taken from page D-1, San Jose Mercury News, Aug 24th 1987: "Atari to Purchase chain of retail stores." Atari will pay $67.3 million to aquire all outstanding shares of stock at $6.25 per share. Federated closed Friday in over-the-counter trading at $5.75. At all Federated stores I have been to, both Commodore and Atari products are carried. -- Dean Brunette {ucbvax,etc.}!hplabs!oliveb!olivej!dragon Olivetti Advanced Technology Center _____ _____ __|__ _____ 20300 Stevens Creek Blvd. | | _____| | | Cupertino, CA 95014 |_____| |_____| |__ |_____
python@pnet01.CTS.COM (Greg Scribner) (08/25/87)
Here is an article quoted from the Evening TRibune Financial page. "Atari
Corp., the personal computer and video game maker, has agreed to buy The
Federated retail electronics chain for 67.3 million in cash.
Under terms of a merger agreement announced yesterday, Atari will tender
an offer for the 10.7 million outstanding shares of Federated stock by Aug.
28.
The Federated GroupIncs.'s seven member board unanimously approved the
$6.25-a-share offer, according to a joint statement the companies released
Sunday.
Atari will gain 65 retail consumer electronics stores in california,
Arizona, Texas and Kansas.
The firm has trouble finding retailers for its products."
That it.
Greg Scribner
rowley@ORVILLE.ARPA (Karl Rowley) writes:
>
>I heard on the radio news this morning that Atari was buying Federated
>Stores.
>Anybody know anything about this?
>
>Karl Rowley
>rowley@orville.nas.nasa.gov
>
>WARNING: I am only reporting what I heard. However, Jack has been known to
>do the unexpected.Sheldon_Hijacker_Chang@cup.portal.com (08/25/87)
Ah, but what about simply raising the "price" on their Amigas so that no or very few people will buy them??? I like the idea, and in just a few hour s the BBSes over here in Silicon Valley has really stirred up with action. Everyone has liked the idea, though I would rather, see GEMdos be debugged, I also like the idea of Atari Being publicised heavily by a chain store. Also isn't that what the Software Departement is supposed to do??? This will probably mean that there will be a bunch of new jobs, and a bunch of laid off workers. One thing I will miss is that guy in their commercials, <sniff>. It's going to be hard getting used to seeing Uncle Jack there instead. Sheldon Chang cup.portal.com!sheldon.hijacker.chang Masters of Software BBS 408-371-7630 The Hotel California 408-253-5123
cmcmanis%pepper@Sun.COM (Chuck McManis) (08/26/87)
Well I guess it is about as true as it gets, so Atari has offered 67 million
dollars for Federated, which is a chain of Stereo/TV stores with some forays
into the computer business. And they are offering cash, not stocks or bonds
or warrants, and Federated has been losing money lately. The opinion of the
analysts that the Wall Street Journal talked to were "You can't buy
distribution, even IBM knows that." As you can see they were not too
impressed. But what does it mean for Atari? Well, it means that they now
have a bunch of stores in the western U.S. that will sell the ST as Atari
wants them to be sold, I assume that means as business machines, and they
will be able to specify that these dealers *not* sell any other computer
brand which has hurt Atari in the past. It also seems to open up the
gates for some blanket advertising since the copy can read 'at your nearest
Federated Store' as opposed to 'your nearest Atari dealer.' I hope the
dealers don't take it personally that they will have this captive dealer
network competing with them. [Scenario : 10 year dealer mumble-fratz computers
makes their business selling Atari computers at steep discounts, suddenly they
impacting the sales of the Federated store in their neighborhood. Atari can
say 'Sell them at List Price or we'll kick you off the Authorized Dealer
list.' What do they do? Go grey market?] Anyway, at least in the short
term it looks like a real drain on Atari's cash reserves and earnings
potential. In the longer term it could be like Tandy and Radio Shack, it's
tough to call. In either event it is going to make for some interesting
rearrangements of priorities at Atari.
--Chuck McManis
uucp: {anywhere}!sun!cmcmanis BIX: cmcmanis ARPAnet: cmcmanis@sun.com
These opinions are my own and no one elses, but you knew that didn't you.trb@stag.UUCP (08/27/87)
In article <26410@sun.uucp> cmcmanis@sun.UUCP (Chuck McManis) writes: >In article <8708241755.AA18954@orville.arpa> (Karl Rowley) writes: >> I heard on the radio news this morning that Atari was buying Federated >> Stores. Anybody know anything about this? > >This would be quite interesting if true. I don't think it is because of >two aspects of the situation. First, Federated (at least here in Sunnyvale) >sells the Amiga rather than the ST. Thus, it would seem to open Atari up First, if memory serves me correct, Federated was (and maybe still is) the biggest retail seller of Atari Hardware. In any case, I think it would be great if that is what Atari decided to invest in because 1) it adds quite a bit of stability to the company (profit wise) during the off season for computer sales, 2) it prevents massive downswings in the company earnings when the semiconductor industry goes flat every couple of years, and 3) it will ensure that at least some stores are carrying Atari Computers and Game Machines when Christmas rolls around. And I doubt Commodore is going to take the trouble to sue Atari...I am sure that the Federated Stores will keep a few token Amigas around...running the juggler demo or some complex task like that. BTW, the juggler demo on the ST is pretty good...a tad bit grainer than on the Amiga, but it was nice (a year ago it would have floored the local ST club, but now it barely rated a 'nice, got any other demos?'...we must be getting jaded. -Todd Burkey trb@stag.UUCP
ud140469@ndsuvm1.bitnet.UUCP (08/27/87)
Gee, this sounds great for people in Texas, Arizona, California, and Kansas.
Unfortunately, I'm probably a good thousand miles or so from the nearest store-
-say, Atari, are you going to be opening a Federated in North Dakota? You
could use a store that carries Ataris (not a one in the whole state--yeah, I
called the place you told me to call, but it had dropped Ataris....).
Hmmm.... curious coincidence: Atari spends $67 million, and the prices
on the Mega's jump quite a bit beyond initial estimates.... (although, I guess
the Mega price jump was announced first--or was it?).
Just some thoughts....
Scott Udell
UD140469@NDSUVM1.BITNET