The Great Neostar Debate

Intro

Definition

Merger

Leading
Towards
the End

Chapter 11
Filed

Chapter 11
Progress

Riggio's
Interest

The Auction

Then What?

Where are
they now?

I've got a
Question!

...But No Email
Program!

"Two of the largest U.S. consumer software stores, Babbage's, Inc. and Software Etc., Inc., will merge to create the nation's largest specialty retailer for video game and home PC software. The new company, as yet unnamed, will have more than 700 stores by the end of the year." (New York Times 8/26/94 C3)

That's what started it.. two companies in a little bit of financial trouble deciding that a merger would be for the better. Why not?

• The pooling of resources
• Buying in higher quantities to lower prices
• The ability to streamline (downsize) regional and district management
• Etc...

Seemed logical...