Bank of America thinks the pickup of the assets could be a strategic low-cost sales driver for Overstock.com (OSTK). Though BB&B’s assets may not be a large revenue driver for OSTK, analyst Curtis Nagle pointed out the deal only represents ~6% of cash for OSTK. He noted that mailing lists, registries, and other customer data could be included in the deal, which could help OSTK with targeting customer acquisition.
The auction for for Bed Bath & Beyond’s (OTCPK:BBBYQ) Buy Buy Baby business will take place June 28.
Shares of Overstock.com (OSTK) rallied 10.88% in premarket action to $23.48 vs. the 52-week trading range of $17.05 to $35.20. Short interest on OSTK stands at 8.12% of the total float.