Quote:
Originally Posted by jimhoward
I think the private equity partnership is getting a tremendous deal. They get a company with $150B revenue that was profitable a recently as three years ago for a song.
I doubt they will liquidate it. My guess is they will streamline the operation and try to reduce operating expenses. If they can get it even slightly into the black they can bring it back public and make a fortune. They are only investing $11B or so.
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I think the problem with Walgreens and CVS is that they are basically pharmacies but they have branched out to be general stores selling food, makeup, and other non-medical items - all at a very hefty markup. Other than the drugs, almost everything else is much more expensive than Walmart, supermarkets (even Publix), and Amazon. I can't remember the last time that I bought something other than drugs at a CVS or Walgreens. If they stuck to their core business (drugs), the stores would probably be profitable.