In case you haven’t heard, Red Ventures is reportedly looking to purchase the Speedway Store for a whopping $16 million.
Since the takeover proposal was first reported by Business Insider, details surrounding the sale have been sketchy. However, more information is starting to emerge, including what company Red Ventures is buying the Speedway Store from.
Who Is Red Ventures?
Red Ventures is a private investment firm based in Los Angeles. The firm invests in web properties, social platforms, and online businesses.
Founded in 2010 by Thomas Peters and Sean Reilly, the company made its mark initially by acquiring the Home Depot digital magazine as a way to expand its reach online. Since then, Red Ventures has gone on to acquire Domains by Snoop Dogg, Bonjoro, and Take Two, Inc. (TTI), among others.
Why Did Red Ventures Acquire Speedway?
According to sources, Red Ventures acquired the Speedway Store to boost its digital magazine. Business Insider reports that since 2014, the company’s largest investment has been in Red Ventures, the firm’s digital media arm, which is responsible for popular digital magazines such as Golf Digest, Food & Wine, and more.
As part of its deal with Red Ventures, the company will reportedly use the $16 million it’s receiving from the sale to fund expansion and new product development.
What Other Companies Are Trying To Buy Speedway?
Rumors of a potential Speedway sale have been swirling since April 2019, when reports emerged that the company was looking for a buyer.
The news came as a shock to customers who were worried about the future of the iconic brand. According to Business Insider’s sources, the company has received multiple takeover proposals, but has so far turned them down.
Since its founding in 1932, Speedway has grown to become the country’s third-largest retailer of automobiles. The company currently has more than 460 stores across the United States and Puerto Rico, and employs more than 15,000 people.
Is The Future Of Speedway Still As Bright As It Was In 1932?
It’s difficult to say at this point. While it’s still a thriving brand, the future of Speedway is uncertain as the company could be sold or go out of business.
It’s also hard to say if the company’s current management team is capable of leading it to continued prosperity. Reports indicate that the company’s Board of Directors has spent the last year evaluating its options, and that sales have declined 22% in the last three years.
For decades, the cars at Speedway were the standard American models that you and I know and love. However, in recent years, the brand has begun to diversify its automotive lineup, with unique models such as the Kia Soul and Jeep Wrangler available for purchase.
Additionally, the rise of e-commerce has made it easier for consumers to get the cars they want, when and where they want them. In fact, according to Business Insider, more than half of all auto sales now happen online. And with the right online tools, it’s easy for consumers to find the model they want, without having to go from store to store, looking for one that’s in stock.
Is This The End Of An Era?
Many car brands have seen their sales decline as a result of the pandemic, with luxury brands particularly hard-hit. While it’s still early days, it’s clear that the future of cars is in the hands of pandemic prevention strategies such as stay-at-home orders and lockdowns.
For decades, the cars at Speedway were the standard American models that you and I know and love. However, in recent years, the brand has begun to diversify its automotive lineup, with unique models such as the Kia Soul and Jeep Wrangler available for purchase. Additionally, the rise of e-commerce has made it easier for consumers to get the cars they want, when and where they want them, thanks to online marketplaces such as Google Maps. With the right tools, it’s easy for consumers to find the model they want, without having to go from store to store, looking for one that’s in stock. Is this the end of an era for Speedway? Only time will tell.