backtop


Print 6 comment(s) - last by Apone.. on May 2 at 12:46 PM


  (Source: static.guim.co.uk)
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.

Source: Best Buy



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By BRB29 on 5/1/2013 8:53:54 AM , Rating: 2
I'm sure Blockbuster did think about streaming and DVD 1 day delivery. AT the time, they were making millions renting at $3-5 a movie and has stores everywhere. What put the nail in the coffin for Blockbuster was Red Box. People that doesn't want to wait a day for a DVD doesn't have to go to a store to pay $5 anymore.


"Folks that want porn can buy an Android phone." -- Steve Jobs

Related Articles
Best Buy Names New CEO
August 20, 2012, 9:14 AM
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













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki