Overstock.com Inc (NASDAQ:OSTK) stock was up today on rumors of a possible Kroger Co (NYSE:KR) buyout.
The rumors about Kroger potentially buying out Overstock.com Inc comes in a report from The New York Post. The publication claims that anonymous sources spoke to them about the deal. The rumor comes as KR looks for ways to expand its business and better compete with Amazon.com, Inc. (NASDAQ:AMZN) after its acquisition of Whole Foods.
Overstock.com Inc selling itself off to Kroger might not come as a surprise to some. Patrick Byrne, the CEO of OSTK, said in December that he would considering selling the business. He wants to focus more on blockchain technology in the future.
“Buying Overstock is a very solid growth strategy if and when Kroger pulls the trigger,” Bill Bishop, cofounder of consulting firm Bricks Meets Clicks, told The New York Post. “This is a land rush right now. They know they need to grow, and it’s difficult to grow in the grocery space.”
The report also mentions that Kroger may have its eye on another online retailer. This is Boxed, which some sources claim could go for as much as $500 million. Just like with Overstock.com Inc, this deal could allow the company to expand its business with acquisitions.
Kroger is refusing to comment on the rumors that it may buy Overstock.com Inc, which is typical for companies still in the early stages of talks.
OSTK stock was up 4% and KR stock was up 2% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.