Bebe Stores, inc. (NASDAQ:BEBE) has stroked a deal with Bluestar Alliance LLC to form a joint venture that is seen as a strategic turn by the two companies to boost their revenues in the coming fiscal years. Already the venture has shown a positive feedback as it increased the shareholders confidence as well as the investors to consider the stocks of the two companies. Following the announcement, Bebe’s stocks have registered a 44.5% positive index in its price.
According to the announced terms of the deal, Bebe happens to be the holding company as it acquired over 50% of the JV Inc. In addition to the take-over deal between the two companies, Bebe has already installed patents and trademarks on the intellectual property held initially by the Bluestar as part of the deal. Bebe Inc. received $35 million from Bluestar as an automatic way of acquiring less than 50% of the property held by Bebe. Therefore, it has been since established that Bluestar is the acquired company from the joint venture.
Bluestar Inc enjoys a perfect position in the market for luxury; consumer brands having been in the operations for a while now. The company’s marketing strategy has been able to create confidence in its customers through branding its most proficient products in the market.
Bluestar is famously known for its purchase of the most profitable brands in the market and for the reason; the company has currently maintained a high profile in the export of products all over the world. In addition to that, the company has patented over 200 licenses in its area of production.
The JV between Bluestar and Bebe Inc. will, without doubt, boost the sales revenue of both companies as well as their share stock as postulated by the financial experts who have been analyzing this great joint venture. TH CEO of Bebe incorporation noted that the company will experience a good global image which has been dwindling in the eyes of international investors of the company.
However, Bluestar is likely to benefit more from the huge customer base of the Bebe, the significant global market share and the huge stock base currently in possession of the company.
With the new joint venture, investors and the general public can only wait and watch how the enterprise performs in the nearing future.