Best Buy Founder Looks to Go Private with Help of Former Execs
July 31, 2012 5:42 PM
comment(s) - last by
Schulze has been mulling over several options including going private and selling his 20 percent stake in the company
Best Buy has been in hot water for awhile now due to its inability to compete with Internet retailers, and the company's founder is looking to take Best Buy private with the help of former executives.
Richard Schulze, founder of Best Buy, is currently looking to bring former Best Buy executives onboard to help him take the company private. He hasn't reached any agreements with anyone so far, but he is in talks with two people in particular: former Chief Executive Officer Brad Anderson and Senior Vice President of Enterprise Capabilities J.D. Wilson, whose position is being eliminated.
Schulze has been considering taking the company private after
stepping down as chairman of the board
back in June. Schulze resigned after an
discovered that he had withheld information about former CEO Brian Dunn's relationship with a female employee from the board.
Ever since, Schulze has been mulling over several options including going private and selling his 20 percent stake in the company.
However, analysts say going private won't be so easy. About $1-$2 billion would need to be raised from a private-equity firm and another $7-$8 billion in debt would need to be raised. It would be difficult to get investors to sell when a takeover would cost about $30 per share, giving it a value of $11 billion.
Best Buy has has problems ever since Internet retailers like Amazon hit the scene, offering cheaper prices for the same items and low shipping costs. Amazon, at the time, wasn't collecting taxes in very many states either (however, the company recently agreed to collect sales tax in more states in exchange for more distribution centers -- ultimately allowing same-day shipping rates for customers, which could potentially hurt Best Buy even more).
Best Buy was forced to
close 50 of its stores
back in March/April. With store closings came lay-offs of 400 corporate and support jobs at that time, and then
another 2,400 jobs were axed
earlier this month. Things aren't looking so hot for the brick-and-mortar retailer, and Schulze is looking to act fast.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
BestBuy sucks at online selling
8/1/2012 4:32:20 AM
I'm not surprised that BestBuy sucks at online selling. They can't even get their HTML valid.
Invalid HTML makes it hard for any external entity (i.e. search engine) to read your content and make a proper judgement about it. That means you have to pay top dollars for advertisement, rather than let the searcher find you naturally.
In addition the HTML code is riddled with bloat comments and tracking data.
"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser
Quick Note: Best Buy Axes 2,400 Jobs
July 9, 2012, 4:00 PM
Best Buy Founder/Chairman Resigns 1 Year Early
June 8, 2012, 6:20 PM
Best Buy Chairman Resigns after Probe Finds He Withheld Information
May 15, 2012, 9:29 AM
Best Buy Reports Earnings, Announces the Closing of 50 Stores
March 29, 2012, 1:26 PM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM
Apple sued because of iPhone 6 Touch Disease
August 31, 2016, 7:00 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Most Popular Articles
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information