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Microsoft May End Partnership With Best Buy | |
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| Time: 12:24 EST/17:24 GMT | News Source: Yahoo News | Posted By: Byron Hinson | ||
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Best Buy Corp. shares fell 9% Wednesday after the company disclosed that Microsoft Corp. wishes to end its marketing partnership with the electronics retailer. In documents filed with the Securities and Exchange Commission Tuesday, Best Buy said "Microsoft has notified us of their intention to allow the existing alliance to expire." | ||
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| #1 By 37 (216.43.88.209) at 10/16/2002 1:50:54 PM |
| What is there to support? The alliance has expired. No biggie. |
| #2 By 415 (68.54.10.120) at 10/16/2002 1:53:32 PM |
| I wonder if they will stop offering the MSN rebates. Those always seemed to be pretty popular. |
| #3 By 135 (209.180.28.6) at 10/16/2002 2:04:01 PM |
|
sphbecker - You mean like moving their development from IIS over to JSP?
I know they've been trying JSP over there, but apparently they are having just as many problems with it as they have with ASP. From talking to some former system architects who used to work there, the real problem is lousy development practices. :) IronCladLou - I think that's mainly what they are talking about. Every other ISP has stopped offering those, so it's understandable that MSN will as well to remain profit competitive. |
| #4 By 2459 (24.233.39.98) at 10/16/2002 2:17:29 PM |
| Many people use AOL in which case they would pay less per month with MSN (or any other provider for that matter) unless they have access to AOL's work discount program where they would only pay like $6 or $7 a month. |
| #5 By 7826 (65.205.133.2) at 10/16/2002 3:24:04 PM |
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#3,
The reason is BestBuy promoted PS2 instead of XBox. And the only alliance I can see is MSN rebate. |
| #6 By 61 (65.32.170.1) at 10/16/2002 3:38:06 PM |
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becker, get a life man....
If that was the case, then Microsoft has a good reason (well, I wouldn't say good, but a reason) to not renew their alliance.... simply, if Best Buy isn't using Microsoft's technology, why should Microsoft keep the alliance. There is no weight being thrown around here, no bullying... |
| #7 By 135 (209.180.28.6) at 10/16/2002 3:39:48 PM |
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sphbecker - Yeah, but no. I mean they're not talking about no longer selling them product like HP just did with Dell. Rather they are saying "Look, we're no longer going to give you $60 million."
There's another article here: http://biz.yahoo.com/djus/021016/1501000889_1.html It says this will impact earnings between 9 to 27 cents a share. That's basically between $30 million and $90 million. This article mentions it is because the MSN branch needs to be profitable, and they can't afford the freebies. |
| #8 By 1896 (65.80.240.239) at 10/16/2002 6:33:27 PM |
| The rebate was a marketing campaign not a strategic alliance with Best Buy. Every promotional campaign is supposed to have an end. The article first use the words "marketing partnership" than "existing alliance". |
| #9 By 7721 (4.40.147.231) at 10/17/2002 12:35:49 AM |
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#7: Actually, the Best Buy MSN promotion required no future commitment at all. It was not like the Compuserve rebates where you pay $100s for 1-2 years of ISP service in return for a small cash refund on your new computer. The MSN promotion offered completely free MSN Internet Access for 1 year with the purchase of a new computer from Best Buy. I know, because I bought a computer from BB and used MSN for a year without paying a cent. Then when the year of free service expired this summer, I opted out with a simple phone call (which was answered promptly by the way, I wasn't on hold for an hour). Currently, the Best Buy stores in my area have now reduced the offer to 6 months of free MSN service, but it's still completely different from the other ISPs' "rebates" that cost hundreds of dollars.
joe_memo |
| #10 By 1845 (12.254.162.111) at 10/17/2002 2:57:07 AM |
| That's quite a deal MSN was offering to you, joe. |
| #11 By 2960 (156.80.64.132) at 10/17/2002 9:38:53 AM |
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Best Buy is extremely price concious. If a vendor won't give BB the terms they want, BB won't order anything from them. No matter who it is.
As an example, there's a USB/Charger cable I want for my iPAQ. The rack for this item has been bare for 5 weeks now. I was told that none were on order, and that it was likely because the vender would not give Best Buy the terms it wanted. Thus, none would be available until they do. Apple has had it's issues with Best Buy as well. On the plus side, it will be nice to see something on the Keyboard/Mouse/Game Controller isles besides row after row of MS Hardware. TL |
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