NEW YORK ( TheStreet) -- Talk about a split. Best Buy ( BBY) reported second-quarter earnings Tuesday and the media was caught between declaring bankruptcy and opportunity at hand.
Perhaps that's why we have two hands. On the one hand was Minyanville, asking in a headline: "Is Best Buy Heading for Bankruptcy?" You got that? With competition from Apple ( AAPL), Amazon ( AMZN) and Wal-Mart ( WMT), Best Buy's earnings were so bad that they are headed for a one-way ticket to financial Palookaville. The Wall Street Journal, on the other hand, weighed in with: "Best Buy's Results Give Schulze 'More Leverage'." You get a load of that 'un? There, the weak earnings give the company's founder and largest shareholder more of a foothold to marshal forces and mount a takeover. But do either of these articles have a fatal flaw? Do either leave out a factor that might prove decisive? At this point, you can't find too much to stand in the way of a bankruptcy argument, but this quarter was so abysmal that viewing it as a springboard to a takeover neglects a point The Wall Street Journal should have mentioned: it will be harder to get bankers on board to assist in financing a deal. Granted, founder Richard Schulze is willing to break into his own piggy banks, but that's only for $1 billion. He'll need help with the rest and after a second-quarter that seems to point toward to the possibility of bankruptcy, additional financing will be considerably harder to come by. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.