Schulze Continues Trying to Buy Best Buy

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"People familiar with the matter" confirm to Reuters Best Buy founder (and ex-chairman) Richard Schulze accepts an offer to examine the Best Buy books-- first steps in a potential buyout worth up to $11 billion.

SchulzeEarlier in August 2012 Best Buy offered Schulze access to financial data (as part of the due diligence process) in order to improve a 2nd offer of acquisition, following the previous refusal of a first offer from the founder.

Talks had broken down then-- but resumed soon after Q3 2012 results showed profits dropping by 91% Y-o-Y to $12 million.

Apparently Schulze is also negotiating with "at least" four private equity firms in order to form a consortium and submit a buyout proposal to Best Buy. Such a proposal is still in early days, and will probably only be finalised sometime after mid-November 2012.

According to Reuters Schulze estimates Best Buy is worth up to $10.9bn (including debt).

In the meantime Best Buy suspends profit forecasts in order to give time new CEO Hubert Joly time to construct a turnaround plan while it continues to close store and attempt to slash losses further.

Go Best Buy Founder Presses on with Buyout Plan (Reuters)

Go Schulze Can Continue Trying to Buy Best Buy