Rumor: Best Buy Looking At Covad?

[qi:011] Best Buy (BBY), the large North American electronics retail chain, that recently snapped up Speakeasy, a DSL provider, is now interested in gobbling up Covad (DVW), a large wholesale broadband provider, according to Broadband Reports.

The discussions have a on-again-off-again nature, Broadband Reports says, and points out that the deal might be for Covad’s VoIP business. Covad which trades on American Stock Exchange for about 65 cents a share is valued at $194 million compared with $97 million Best Buy paid for Speakeasy. I have contacted Covad and am waiting to hear what they have to say.


If Covad is indeed in plan, then it could get some interest from the likes of AT&T (T), Qwest (Q), and Embarq (EQ). It currently has a line sharing agreement with AT&T. They are also one of the first to provide ADSL2+ in the US.

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