Some specialize in the merchandise or the office furniture. Others specialize in the business assets and goodwill. Arnold's plan is to either move failed dot-coms into the control of stores or roll them together into viable industry leaders. The question I have is whether, except for capital-intensive areas like grocery delivery, these deals make any sense. The assumption is that the Internet is one giant mall and that buying all the stores gives you market dominance.
Talent is the key raw material, and talent can move.
The costs of launching a Web business are going down, not up. You don't need Super Bowl ads, and online CPMs keep declining. Labor costs should now be more reasonable, and the cost of technology is continually falling. Maybe the Internet isn't like retailing or other capital-intensive industries. Maybe it's more like the law.