Best Buy Acquires SpeakEasy

spazimodo writes "From the announcement e-mail from Speakeasy CEO Bruce Chatterley: 'I am pleased to announce that Speakeasy has been acquired by Best Buy, an innovative and growing Fortune 100 company and the top consumer electronics retailer in North America. This is a significant milestone for our company as our new relationship will help us realize our goals of becoming the No. 1 provider of voice and data solutions to small businesses. It is important to note that though Speakeasy will now be a wholly owned subsidiary of Best Buy, we will continue to operate as a standalone, independent operating division with headquarters in Seattle.' As a longtime Speakeasy customer, it's too bad to see their business moving in this direction. Back in the day when I called up their support with a problem, and mentioned I was using an OpenBSD box as a firewall/gateway the response was: 'cool!' — slightly different from the response Comcast or Verizon would give. I can't imagine they'll be able to maintain that independence, and there's no way I'm paying a premium for Internet service to Best Buy."

Comments

God Forbid

[Bananatree3]

I sure hope they don't turn SpeakEasy into another Geek Squad quandry. Consumerist has a nice quote on this:

A common refrain we hear from the former and current Geek Squad employees we've been talking to is that Geek Squad used to be awesome. Robert Stephens built up an award-winning company with a reputation for being the best in the business. Then he sold it to Best Buy and they turned it to garbage.

Re:God Forbid

[huber]

Best Buy did the same thing with The Musicland Group (Media Play, Sam Goodie etc..) Media Play was one of the best jobs i ever had. Everyone got along, corporate realized that every store location served different demographics and let the stores cater to those needs. Then Comes best buy with their one size fits all mantra. All of the sudden all employees have to sell so many "replay cards" a month or risk termination. They sucked to fun out of that place in less then a year. Next thing you know MusicLand is out of business. I hate Best Buy.

Re:God Forbid

[VirtualAdept]

From my perspective, I absolutely *loved* Media Play in their heyday. I used to go there all the damned time. For one thing, they had by far the best selection of anime I could find back when anime was starting to become big. And from that, I would go there and browse books and CDs. I'd occasionally buy a video game there. And they always had other products that made me go 'ooooh' Then they went downhill. Getting pinged every time about a Replay card got annoying very, very quickly. It seemed like their stores slowly went downhill in terms of cleanliness and display of product. I started going to other stores for books and video games. I was already buying less anime. It really came down to the fact that I stopped caring about Media Play, and didn't really notice them go out of business.

Suckage

[ender-]

Well that kinda sucks. I'm already saddened by the fact that I can't get Speakeasy at my current home. It was always worth the extra money for their service, and static IPs. Now I have to live with the fact that by the time I move to another house, Speakeasy will probably suck as badly as SBC. :(

April Fools

[yppiz]

Please tell me this is an early April Fools.

Please?

I hope they hold it together, but if they don't, there's Sonic.net which is like Speakeasy without the marketing budget.

--Pat

Damn

[rainmayun]

A few years back, at the time I signed up for Speakeasy DSL, they were the only decent ISP who would serve me. Verizon said I was too far from the CO (mechanized loopback test said 17000 feet) and they weren't eager to build new infrastructure in a zip where the median age of residents is 60-something. Comcast didn't have the capacity in my neighborhood development, although their flyer route drivers didn't seem to know that. Speakeasy said "sure" and I got 1.2 Mbps down and the line was clean. I have 2 static IPs, one on a FC5 box and one shared on a wireless router amongst 2 (and sometimes more) Windows boxes, and all for $42 a month. I was on the verge of getting rid of my Verizon POTS, even though it would push up the DSL cost $15. But the main reason I stayed with Speakeasy was the cheap static IPs, no complaints about what services I run, and knowledgeable tech support. I swore I would never ever give Comcast another dime of my money for any service, and I really don't care for Verizon support. But if Speakeasy goes the way of Geek Squad, or in any way resembles Best Buy customer service practices, I might just give up completely.

Anybody know any other independent ISPs left who might not treat home techies like criminals for running something besides Windows?

Speakeasy

[pHZero]

As an existing Speakeasy customer, the e-mail I received from them this morning made me uneasy, but I'm willing to stick around for a while and see how things go.

Here was the text of the e-mail I received:

Dear Speakeasy Members,

Today is an historic and exciting day for Speakeasy.

I am pleased to announce that Speakeasy has been acquired by Best Buy, an innovative and growing Fortune 100 company and the top consumer electronics retailer in North America. This is a significant milestone for our company as our new relationship will help us realize our goals of becoming the No. 1 provider of voice and data solutions to small businesses. It is important to note that though Speakeasy will now be a wholly owned subsidiary of Best Buy, we will continue to operate as a standalone, independent operating division with headquarters in Seattle.

Speakeasy will be an important part of the Best Buy For Business service that delivers simple, reliable, and affordable technology solutions to small businesses. Speakeasy's array of broadband voice, data and managed services offerings will be the focal point of the Best Buy For Business communications solutions. This agreement is a major step forward for our company. While our business remains strong, our relationship with Best Buy provides us with additional resources and brand recognition, while opening new sales channels which will dramatically accelerate our growth.

Best Buy, like Speakeasy, is known for its high level of customer service. Our reputation as a trusted provider of voice and data services with stellar customer service will not change. Our values are similar too -- Best Buy shares our customer passion, respect for individuals, and drive to do the right thing while achieving results. All aspects of your service will continue to be managed by Speakeasy and the excellent service and support you expect will continue uninterrupted.

Best Regards,

Bruce Chatterley

President & CEO, Speakeasy, Inc.

GENERAL INFORMATION

What are Best Buy and Speakeasy announcing today?

Best Buy has agreed to acquire Speakeasy, a privately-held voice and data solutions company based in Seattle, WA. Speakeasy will be aligned under the Best Buy For Business (BBFB) unit, enhancing Best Buy's technology portfolio and ability to help small businesses improve their productivity and cut costs.

Why is Best Buy purchasing Speakeasy?

Speakeasy is a highly regarded voice and data services provider with national coverage whose values align well with those of Best Buy. Best Buy is seeking to accelerate the growth of Best Buy For Business (BBFB) by providing core communications solutions for small businesses. Speakeasy's array of products offer a simple, understandable value proposition to small business owners, and gives BBFB the opportunity to build and maintain a regular, recurring relationship with customers.

Who is Best Buy? Where are they located?

Best Buy Co., Inc (NYSE: BBY) is one of the nation?s leading retailers of technology and entertainment products and services. Their mission is to give customers great experiences - whether they are shopping for consumer electronics, home-office products, entertainment software and appliances, or using those products and related-services in their homes or offices. Best Buy's corporate campus is located in Richfield, Minnesota and it operates over 1,150 stores across the U.S., Canada, and China.

Why would a retailer buy a technology company?

One of Speakeasy's core product offerings is Voice over IP (VoIP), which is becoming a popular choice for small businesses who seek efficient and cost-effective telecommunications services. Best Buy For Business' mission is to deliver simple, reliable, and affordable technology solutions to small businesses. A product offering such as VoIP, which has immediate compelling appeal to most SBs based on cost savings and simplicity, is an attractive value proposition that allows Best Buy to round out its

Re:grammar preemtive strike

[Stanistani]

*ahem*
spelling not grammar

Re:This is bad

[blincoln]

I'm sure they'll claim "nothing will change"

Things are already changing.

I signed up with Speakeasy several years ago, and was always impressed with their quick and friendly tech support. I also liked supporting a business that had grown from a small local company to something more successful - I remember using the monochrome dumb terminals they had for free lynx usage in their coffeehouse back in the mid-90s.

In December I decided to switch to their OneLink product, because I wasn't using my home phone anymore. It took a month for them to send someone from Covad out and to call the right number when they got there. I ended up taking 3-4 days off of work because (unlike the phone/cable/power companies) Covad can't be bothered to keep keys to locked utility rooms at apartment buildings. However, once it was finally hooked up it worked great, even if I did have to buy yet another DSL modem.

Then, a month after I switched, they sent me a bill with an extra $300 tacked on for "missed appointments" with the Covad techs. I called them up and they would only remove one of them. I figured there was no way out of it and paid it but decided to cancel my service. When I did, they told me that by using it for more than 25 days, I had implicitly agreed to a 12-month contract with a $300 early termination fee. I asked them how it was possible to agree to a contract without signing anything, speaking anything, or even clicking on an "I accept" type button, but they insisted it was true. I'm still disputing that fee.

I suppose they were just gearing up to switch over to the Best Buy model of customer "service". It was especially thoughtful of them to not bill me for the alleged "missed appointments" until I'd already supposedly agreed to their 12-month "contract".

No more recommendations from me

[analog_line]

I recommended Speakeasy to all my clients, and just about everyone I knew, because I had amazing service from them. Best Buy I've never had anything but shitty service from. As of a few minutes ago, I'm recommending everyone I know steer very clear, and all my clients who are currently using Speakeasy to be prepared for when things start collapsing.

OK, Cut the doom & gloom and focus

[Unlikely_Hero]

I just got off the phone with someone in the corporate office in Seattle and I for one am willing to wait it out.
He explained it quite clearly to me, without doublespeak or marketing crap.
Speakeasy will be a wholly owned subsidiary of BestBuy. All the staff is staying in Seattle, all the tech support will still be in Seattle.
SPEAKEASY WILL STILL BE OPERATING THEIR NETWORK, IT WILL NOT BE MANAGED BY ANYONE FROM BESTBUY.
It basically came down to this
1. BestBuy needed an ISP that didn't suck to offer their business customers when they offer to "outfit" a business. For BestBuy (regardless of how malicious they may be), offering a business customer they want to keep as a long term client Comcast or Verizon or ATT or god forbid AOL isn't a winning strategy. So they want to be able to offer SpeakEasy and have it be quick, efficient, and "standard" if you will. They want Speakeasy to be their standard offer.
2. Speakeasy wants a shitload of working capital. BestBuy can give them this. Now, I think it's kind of like accepting blood money, but I'm not the one that has to take care of the accounting.

It's not like we're going to have blueshirts running the network or those yellow-shirt mafia answering the phones.
The e-mail hit me like a punch in the face too.
Also, just so folks know, no one at Speakeasy is "cashing out". Well, at least not the "out" part.
The executive/management people are all staying. Bruce Chatterly will be reporting to a VP at BestBuy, not sure which. the internal structure of Speakeasy is remaining as is.
Also, to point out a big difference. Geek Squad was brought "in house". Speakeasy is NOT being brought "in house" (thank god..)

Thanks to those who pointed out SonicDSL and DSLExtreme as alternatives, I hope I won't need them.
I'm gonna give speakeasy a chance. They've been a fabulous ISP and they deserve the chance.

Re:OK, Cut the doom & gloom and focus

[russotto]

If you believe all that, I've got a bridge to sell you. As soon as the deal is closed, BestBuy will be imposing their corporate policies on Speakeasy. First thing will be HR policies -- those will cause many of the best people at Speakeasy to jump ship. Then they'll start cutting services that aren't part of their "core" -- since it's part of "Best Buy for Business", that probably means residential services will be going, piece by piece. Customer service? Best Buy insist on cost cutting there too. Somewhere along the line Mr. Chatterly will take his money and run. Things will get worse, until Best Buy sells the what's left of the company to AT&T or Verizon.

Re:This is bad

[Anonymous Coward]

The $300 "missed appointments" ($150 missed appointment fee x2) and the additional $300 early termination fee is presented to you by Covad through Speakeasy. Covad is a massive DSL line carrier and Speakeasy piggy-backs Covad with their Internet service in an almost Master-Blaster type way. Covad will present the charges to Speakeasy who informs the customer and then gets it in the ear. As you can tell, I worked for Speakeasy and as a PTA I handled many, many calls regarding these fees. The Speakeasy terms of service states the 12 month contract term and other fees that can apply for various reasons. (ie, missed appoinments, early termination) No, these terms aren't discussed very often with your Speakeasy sales rep, but if you were aware of these you would probably have never signed up for Speakeasy in the first place.

This has nothing to do with Best Buy acquiring Speakeasy, this is how the Speakeasy/Covad relationship works and I wouldn't expect it to change.