blog At times it has seemed as though maverick online entrepreneur Ruslan Kogan has had limitless energy. Setting up a massive online operation to sell own-brand consumer electronics, taking on retail giants like Harvey Norman and JB Hi-Fi, and even developing an online furniture sideline. When it comes to energy, Kogan has had enough to spare.
Depending on what you choose to believe, a report published by the Financial Review this morning suggests that either Kogan may have run out of energy and is looking to take a break (and who could blame him for that, given the recent Kogan Mobile fiasco (Delimiter 2.0 link)), or is looking to take his business to the next stage with a decent slab of capital injection. The newspaper writes (we recommend you click here for the full article, although it’s been intermittently paywalled):
“BRW Rich-lister Ruslan Kogan is exploring strategic options which could include selling a stake in Australia’s largest online electronics retailer, Kogan.”
If Kogan is looking to sell only a stake in his business, it would mean that he sees an expansion opportunity that would require a significant amount of new capital to pursue. Given Kogan’s already strong revenue base, we’d find this hard to believe — after all, what kind of opportunity would Kogan want to pursue that he couldn’t already? Alternatively, Kogan himself could be looking to exit the business at its peak; this is also completely understandable, given he’s been running it for quite a few years now. Very busy, intensive years.
For what it’s worth, we hope that if Ruslan Kogan is looking to sell the whole Kogan business, that he sells it to an Australian company; we’d like to see this innovative online retail model stay in local hands. But it might not be the best idea to sell it to Harvey Norman. That would represent irony on a scale which even your humble writer would find it hard to accept.
Image credit: Kogan
Wouldn’t he just sell to the highest bidder?
Money isn’t always the only aim in these cases … Kogan is already very rich ;)
But who would say no to (potentially) tens of millions of dollars more? And beside I imagine he would enjoy selling his company to HN. After all these years of fake war between the two it would be sweet sweet irony
If he sells it to HN, it’ll be dead as a door nail within 12 months….
yes,…
so HN buys it ..and kills it..
then he re opens with Koogan :P and pisses off HN one more time !
Still wont change the fact I wont be buying of Harvey ;o)
Nothing wrong with buying at Harvey Norman … when the product is half price or cheaper. Recently picked up a wireless keyboard for $20 (marked at $75).
Any purchase of that magnitude would include contractual terms that prevented Kogan from selling out, then starting a rival with exactly the same business model and product for a limited time.
Company CEO’s might be stupid sometimes, but not when it comes to business
I’d get out as well. It won’t be long now before his products become exposed as cheap chinese junk with slick paid for current affair show marketing. I don’t think his company has a long-term future.
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