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If you stand still you move backwards!!!

Carphone has been clever to separate it's telecoms and insurance business from the sale as this brings all the ongoing recurring revenues to the group

It will be interesting to see what Best Buy's money can bring to a purely retail business perhaps their deep pockets can make it a very uncomfortable time it's competitors

What a lot of people don't know is that Carphone already accounts for 8% market share of the UK laptop market (despite only giving them away for a few months) and with the backing of a US giant and a widening range this market share could grow to unprecedented levels

Well done Charles, one of the true knights of UK business

Perhaps Best Buy can transform their appalling customer service.

So it looks like Tiscali are definitely on the menu for CPW then...won't that transform them into the biggest player in the broadband market - thus realising Charles' dream of being bigger than BT?

Hmm... Carphone Warehouse... a retail outlet where you can a buy a phone that you won't be allowed to use in your car. Time for a new name?

A scintillating bit of strategic footwork.

As consumer spending contracts, retail business turnover will plummet. Only retailers with a new or revived business model will weather it.

One solution for retailers is to expand and diversify their product range, overnight. Another way is to get into any business other than retail.

Carphone warehouse is doing both.

By partnering Best Buy in its retail outlets, Carphone expands and diversifies its product range. But the strategic fit is also immaculate. It broadens the definition of what business they are in.

This is likely to send electronic goods retailers across the spectrum into a tailspin.

By retaining his non-retail subscription business, Dunstone moves to the business high-ground. To develop a cash cow in a growing segment of the economy is especially useful in deflationary times.

Nifty.

When I first heard this on the radio this morning I had my doubts. On closer inspection it appears that Dunstone has got himself a good deal: a nice injection of capital and a new partner to take his stores to the next level. It should be impressive.

I shed no tears for DSG as Dixons had an awful reputation for customer service. As a consequence they have had to fall back on the historical emolience of Currys in order to maintain a face in the High Street.

The WalMart take over of Asda made WalMart realise that there were better ways to run a supermarket than the model they operated in the US. I understand there was a management culture transfer from Asda to WalMart! Might even have saved their bacon!

I would agree 100% with post 7 it appears an excellent move for both parties.

Also as they have worked together for some time in the States it is likely that the are both fully aware of each others cultures and aspirations.

It looks like the big American companies are buying British !

I guess at least some people out there have an eye for quality...........

How many more British companies will become American subsidiaries over the next few years ?

Only time will tell.

Nice work Charles.

You have been my boss for a few years now and i must say you are a role model to aspiring enterprenuers like myself.... You've been there done that and still doing more! we are learning from you Charles...

Cheers.

Call out the instigator, because there is something in the air?

2400 outlets, not debt and a few hundred million in the bank.DSG might be quaking but BT and Virgin will be a whiter shade of pale.

Dunstone took on the mobile industry and won, he has taken on the fixed line industry and is all ready number 3, next step tiscali and their TV over IP license, watch out Sky, CPW is comming to a customer near you

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Dear Robert

The bottom will fall out of the consumer market within the month, inflation is at 11.25% THE REAL RATE, and, the fact is the government are hiding the real figures to prvent the public from realising we ARE IN RECESSION, of that there is NO DOUBT.

Create a new store as the bottom fall out of the market is good, the only way forward at some time is up, AND UP is now three years away.

Charles Dunstone has cost me a lot of money not once, but twice. First time, it was my fault; I bought shares at the IPO for his mobile phone shop business. They tanked. The second time, he came in from the side, claiming to give away "free" Internet. It wasn't free, but the shares I held in a rival firm, Plus Net, tanked anyway. I lost money again thanks to him. Take a tip from me - this Dunstone bloke is like a black cloud - I loose money whenever he comes over. Be careful when he is in the vicinity, or you'll loose your money too.

So it's Charles's fault your a poor share dealer? Stick to the lottery if you don't have the knowledge to deal in shares!

"Some Carphone shareholders may grumble that Dunstone is selling this stake at the wrong point of the economic cycle and that he could have received a better price if he had waited till the good times return."

Hopefully these shareholders realise that by the time 'the good times return', you are already too late.

This is a great move by CD. Best Buy is such a powerful brand stateside and if they can translate some of their 'instore experience' to the CPW retail chain, the consumer will be a winner here.

Key thing to watch out for will be increasing involvement with APPLE as CPW looks to bask in the glow of the IPOD/IPHONE halo effect and give Apple more space for ibooks, imacs etc etc in the new BB/CPW outlets.

Experience of Best Buy in the US ........'you've bought it - it doesn't work ?- your problem'
Experience of Carphone .......you've bought our service, it doesn't work? - your problem

Doesn't look good when 2 companies who know and care little about customer service get together

It will be interesting to see how they approach the market.
Internet retailing has put a squeeze on prices and margins at large retailers with high costs because they own or rent large retail buildings.
The extended warranty market has come under pressure in recent times also cutting profits.
The good news is that if they buy to sell on to customers on a European scale that means good scales of efficency for purchasing when negociating with electronic companies.
Hopefully the company will not try to take advantage of currency fluctuations to make excess profits, seeing as they would likely buy in Euros for all operations.
If they were to sell via the internet and sell limited various stock in carphones current shops it could well prove a sucess.

I agree with #18. CPW already have an established mechanism for mail order, either through store or online. I wouldn't surprised in the slightest to see large out of town Best Buy stores, with the high street CPW stores having a 'Best Buy Direct' type catalogue operation along side the traditional phone sales.

That way you get the best of both worlds; A huge network of exisiting stores, with a huge range of products available (generally next day from the highstreet), and the pile them high retail park stores more suited to the likes of comet, currys and increasingly the supermarkets with stock available to take away there and then.

# 15:

If you think you can judge a dealer based on two trades, you'd better stick to dealing in marbles and picture cards, wizgti.

Surely yesterday's bid for Tiscali reveals the rela motivation of the Best Buy deal. Share the risks of running a bricks and mortar retail business with someone alot bigger. Use their investment to build a bigger services business in broadband services where operational costs are much lower