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!
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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
Quick Note: Pebble, Pebble Steel Smartwatches Reduced to $99, $199 Respectively
September 30, 2014, 3:59 PM
Report: Microsoft Lumia 830 Headed to AT&T on November 7
September 30, 2014, 12:51 PM
Update: Samsung Responds to Reports of Screen Gaps on Galaxy Note 4
September 30, 2014, 11:02 AM
Apple to Begin iPhone 6, iPhone 6 Plus Sales in China October 17
September 30, 2014, 9:55 AM
eBay to Spin Off PayPal Business Next Year
September 30, 2014, 7:28 AM
HP Adds $99 Windows Tablet, $199 Windows Notebook to Stream Family
September 29, 2014, 7:17 PM
Most Popular Articles
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
iBend: Reports Grow of Razor-Thin iPhone 6+ Folding Like Origami in Your Pocket
September 23, 2014, 6:08 PM
New AT&T Mobile Share Value "Double Data" Promotion Lasts Through October
September 28, 2014, 8:32 AM
Update: Apple Releases iOS 8.0.2 Update to Make Up for Botched 8.0.1 Release
September 25, 2014, 8:19 PM
FBI Outraged That Apple, Google are Adopting Digital "Locks" to Protect Users
September 26, 2014, 1:00 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information