HEXUS.beans :: Newegg.com set to buy Dabs.com?

[rc55]

Just did. Thanks for the heads up.

Ruairi

[PD HEXUS]

Originally Posted by rc55

Just did. Thanks for the heads up.

Ruairi

[Gordy]

10million seems seriously odd money for a biz with a turnover well over 100million quid a year. I doubt for one the shareholders would even listen to someone with that low an offer.

I can concurr with what david is saying about low margins in the industry , I looked into it a while back and the margins for pretty much the entire IT sector are very low, 15% or lower (normally a lot lower)

When you look at other industries where the margins are typically 50% you see the problems that retailer and etailers must have.

[Funkstar]

when i worked at a local computer store (has been out of business for a few years now) some headline items were down as low as 5% margin, but then others (like keyboards, mice, floppy drives, speakers, etc) were definitley up at about 50%

[teachmech]

Anybody else think that Dabs have become expensive lately?

[Swafe]

10 mill seems a little low, dabs is valued at 50 mill, is it not?

[Mike Fishcake]

Originally Posted by teachmech

Anybody else think that Dabs have become expensive lately?

TBH, I've noticed that on a lot of things, especially earlier this month, they were a lot cheaper than a lot of the other suppliers i normally buy from.

[Oldjim]

According to the Sunday Times PCWorld (Currys Group) are putting a bid in for Dabs

Business Digest
# DSG INTERNATIONAL, the retail group that owns the Dixons high-street chain, is embracing the dotcom revival by entering talks to buy Dabs.com, one of Britain’s best-known internet retailers. It is the shirt sponsor of Fulham, the Premiership football club.

DSG is understood to be bidding for Dabs.com through its PC World subsidiary, headed by Kevin O’Byrne, who also serves as the group’s finance director.

Deloitte, which is handling the sale for Dabs.com’s founder and sole shareholder, Dave Atherton, has put a price tag of at least £90m on the company.

According to the latest accounts filed at Companies House, Dabs.com made a pre-tax profit of £5.7m in the year to March 31, 2004 on turnover of £196.9m.

[Funkstar]

thats interesting for two reasons

1. i didn't realise Dave Atherton was still the sole shareholder

2. if DSG do buy them, it will confirm that i'll not bother buying from Dabs again