October 11, 2006

Sold, for $6 Billion


We knew they were up to something, didn't we? Did anyone notice how plump the shelves had become? How many new brands of embroidery scissors there were, and the fact that the anemic-looking DMC slots were suddenly stuffed full? Well this is the answer. Michaels' shareholders on October 5 voted for a merger with a couple of private equity firms. Those firms paid a tasty premium to the shareholders; last spring Michaels' shares were trading at about $29/share, and the merger agreement is for $44/share. Once the purchasers have acquired all these shares, they'll then delist the shares from the stock market and take the company private. A lot of companies are doing that now. Once the company is private, they'll be able to get out from under the onerous chores of financial reporting to the SEC and the public. There was a flurry before the meeting of company insiders doing some perfectly legal exercising of their stock options to buy shares of stock for $10.50 (give or take) a share, which they will receive $44 for. Do you think the guys who brought you cut-rate crafts and cheesy materials and not enough of anything really (and who incidentally drive all the little scrapbooking stores out of the neighborhood when they came to town) deserve to become millionaires over their great craft and home dec insights?

So all that business with the overstuffed aisles and nice coupons and lots of choice? It's nothing more than someone getting gussied up for a first date. It'll be interesting to see what happens after they're married....

Here's some progress on a project that I didn't buy at Michaels (and I need to stitch poor Joseph's eye first thing). Isn't his robe a hoot? I didn't even mind that the pinkish stripes are actually mauve.

7 comments:

Annemarie said...

Didn't get any of the Michaels/financial stuff - what can you expect from someone who translates romantic novels for a living ;o) - but the Birth of Jesus is coming along nicely. The robe is lovely!

Sue said...

Your Bith Of Jesus is coming along nicely. Has Whale Hunting been put away? I've so enjoyed watching you stitch that.

Wendy said...

I hadn't heard about Michael's being bought/sold. It will be interesting to see what happens with the stores and if any changes are made. I have a Michael's about 5 minutes away so its great for when I need that one skein of floss. Other than that, I don't find much of anything to buy there.

Vonna said...

Hmmmm....isn't that interesting....I don't like
michael's for the simple fact that they have inflated prices....in my own humble opinion.

BoJis looking fab! Love vthe leaves on that palm tree.
:O)

Michelle-ozark crafter said...

I don't much care for Michael's. I shop a wholesale company called Shrock's for a whole lot less and they have tons of stuff.
And I do like your project.

Karen said...

I knew Micheals was up for sale and heard about the possible privatization. Didn't know the deal went through though. I have to agree with the others, prices there are way too high. That's how they are able to issue those weekly coupons. I'm sure they still make a decent profit with 40-50% off that one item that you can get with your coupon. Sadly, our LNS went out of business right after they came to town.

Your Birth of Jesus looks great. I love the colours. :)

Barb said...

Love your Cross stitch piece. I heard about Michaels on the news a few months ago. My brother-in-law was a Manager of one of their stores and he explained it all to me. But after working for them for about 10-15 years he decided to move on and is now manager of a a Pet Store chain which really is more up his alley anyways as he was more of an animal person than craft person.