Best Buy UK Sells 50 Percent Stake in Best Buy Europe
April 30, 2013 1:44 PM
comment(s) - last by
It will be sold to its partner Carphone Warehouse
Best Buy UK announced today that it will
sell its entire stake
in the Best Buy Europe joint venture.
Best Buy UK said it will sell its 50 percent stake in the Best Buy Europe joint venture with Carphone Warehouse. This equates to about £500 million ($775 million USD), which will be sold to Carphone Warehouse.
However, Best Buy UK will have to pay Carphone Warehouse £29 million ($45 million USD) in agreement termination fees.
"After reviewing the business and spending time with our partners, we concluded that the timing and economics were right to enter into this agreement with CPW," said Hubert Joly, president and chief executive officer of Best Buy. "This transaction allows us to 1) simplify our business; 2) substantially improve our Return on Invested Capital, one of the five pillars of our Renew Blue transformation; and 3) strengthen our balance sheet.
"Each international market is different and the sale of our European operations should not suggest any similar action in our other international businesses."
Shareholders still have to approve this deal. They are expected to do so by the end of June 2013.
Best Buy Europe's first store opened in May 2010, with about 11 stores launching across the UK. However, things started looking grim as the two companies decided to close the retail partnership just one year later due to an unprofitable year.
Now, it has been over a year since
Best Buy shut down
its retail stores throughout the UK.
Best Buy hasn't had a lot of luck in the U.S. lately, either. It has
axed thousands of jobs
over the past year alone, and even had to
find a new CEO
after a scandal arose concerning former CEO Brian Dunn's relationship with a female employee from the board.
Best Buy founder Richard Schulze even tried to
take the company private
last summer, and considered selling his 20 percent stake in the company as just one option.
This article is over a month old, voting and posting comments is disabled
I think that the most newsworthy part of this...
4/30/2013 9:35:59 PM
is that there is a company (still) called Carphone Warehouse!
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Best Buy Names New CEO
August 20, 2012, 9:14 AM
Best Buy Founder Looks to Go Private with Help of Former Execs
July 31, 2012, 5:42 PM
Quick Note: Best Buy Axes 2,400 Jobs
July 9, 2012, 4:00 PM
Best Buy UK Goes Under
November 7, 2011, 12:05 PM
Man Who Shot Father for Texting During Movie Previews Was Also Texting
March 14, 2014, 2:25 PM
Sony's PS4 Outsells Microsoft's Xbox One for February
March 14, 2014, 12:36 PM
Skrillex Releases Free Album Inside App, But Crashes Torture Fans
March 13, 2014, 8:04 PM
Microsoft Waives Windows Phone OS Licensing Fees for Two Hardware Makers in India
March 13, 2014, 1:07 PM
Huawei Says Windows Phone is "Low Priority", Relegates It to Dual OS
March 13, 2014, 11:21 AM
$1,200 Nikon 1 V3 Mirrorless Camera Offers 120fps Slow Motion Capture
March 13, 2014, 9:04 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Tesla Motors Calls New Jersey Out on New Rule Against Its Direct Sales Model
March 11, 2014, 12:01 PM
NASA Considering SpaceX "Red Dragon" for Returning Mars Samples to Earth
March 10, 2014, 2:43 PM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information