Office max/office depot merger named one of The dumbest deals of 2013

[JEDI]

http://money.cnn.com/gallery/investing/2013/12/24/dumbest-deals-2013.fortune/2.html

the search committee decided neither CEO was qualified to run the combined company.
(WTF?!)

Worse, it seemed no one else wanted the job either. When the deal was completed in early November, Office Depot (ODP, Fortune 500) still hadn't found a new CEO. Eventually, the company went with Roland Smith, who came from the grocery business, and had once been the head of Wendy's.


lol

 

[KB]

It doesn't sound like such a bad idea. Two struggling companies hoping to merge to form one stronger company. The real bad deal is trying to stay alive when you have to compete against the internet.

 

[Lonyo]

I like how they explain why all of them are specifically bad this year.
Except for Microsoft-Nokia, where they just say "it's bad because MS have a history of bad deals and because MS is already big" without any explanation as to why specifically that deal is a bad one.

 

[Jimzz]

It doesn't sound like such a bad idea. Two struggling companies hoping to merge to form one stronger company. The real bad deal is trying to stay alive when you have to compete against the internet.

This.

Neither one was well suited to last long so they now combine, get rid of stores that compete with itself, and try and leverage its size to get better prices.

But in the end it may not work due to many not using paper and other office style supplies as much, the internet, and others from staples to even Costco eating what thin margin they have already.

 

[Markbnj]

It doesn't sound like such a bad idea. Two struggling companies hoping to merge to form one stronger company. The real bad deal is trying to stay alive when you have to compete against the internet.

Truth, but you have to wonder what will happen to suburban and rural America when even the low-end retail jobs are gone.

 

[BoomerD]

In the 90's (IIRC) there was talk about OD and Staples merging. I thought it was a great idea since there was no Staples store close to where I lived...Never materialized.

Office Depot has closed all their stores near where I now live...it's about a 25 mile drive to the closest one...but OM and Staples have numerous stores in the area. Staples is the only one of the three that's doing well.

IMO, it would make good sense for all three to merge instead of fighting for a share of the dwindling market.