Feeds

Kingfisher buys Streets Online

Now biggest UK e-tailer?

  • alert
  • submit to reddit

Build a business case: developing custom apps

Kingfisher, the British retail conglomerate, is buying an 85 per cent stake in Streets Online, the e-tailer of records, CDs, games and books for £15.7 million.

The group said the acquisition of the £10m t/o Streets Online would complement its MVC chain of 87 entertainment stores. It quotes industry projections that the UK's music, video/DVD and games entertainment
market will grow by 8 per cent each year to around £5.7 billion in 2004. Around 17 per cent of this market will come from e-commerce.

The deal has won the blessing of Freeserve, holder of 14 cent of Streets Online, and a key distribution outlet for the e-tailer's AlphabetStreet, AudioStreet, GamesStreet and DVDStreet brands.

Freeserve, owned by Dixons, Kingfisher's biggest rival in electrical retailing, has shown it can drive a hard bargain, while proving that it is as independent as it has always claimed.

It gets £2.6m cash for its Streets Online shares - and it gets increased access to Kingfisher outlets with CD sign-ups at MVC stores - and marketing access to MVC's five million registered members. Kingfisher has also promised to fill "significant advertising space" on Freeserve, by promoting its general merchandise retail brands on the site.

Streets Online paved with brass

How Streets Online has scaled down its expectations: at the height of the market in February it sold a 14 per cent stake to BSkyB for £6 million. This was supposed to be a top-up prior to £150m float planned for the first half of the year. But like rival Jungle, bought last month by GUS for £37m , the company was beached in the post-March-hate-B2C-don't even think of IPO-ing market.

Even B2C e-tailers that did get their IPOs away are seeking 'strategic partners' (read 'new owners'). In recent days, QXL and Letsbuyit have both announced their interest in such alliances. ®

Related stories

GUS buys Jungle for £37 million
The Streets Online are paved with Gold

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.