Would Best Buy Acquire RadioShack?

The New York Post reports that RadioShack could put itself up for sale and one potential buyer could be Best Buy. The reason Best Buy might show interest is because it has tested smaller stores and wants to make bigger waves in the wireless and handheld business, the paper asserts.Other options for RadioShack include finding another buyer, or using its $900 million in cash to take on a major share buyback or undertake its own large acquisition of another outfit. Some, however, are skeptical that anyone would purchase RadioShack. One columnist, at 24/7 Wall St., says that a RadioShack deal is too expensive for most. With shares near $22, it would put the total purchase price above $3.5 billion, a deal that is likely too spendy for private equity players. Plus, its net income is too low.But back to Best Buy. Would such a deal make sense for it? At the very least, we doubt that Best Buy has a need to add a network of 4,500 stores.ALSO: Fred’s: A Discounter at the Back of the Pack