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Best Buy Founder Confirms Intent to Launch Takeover for the Company
Published on:
The founder and former Chairman of the struggling US consumer electronics retailer, Best Buy has made the long anticipated offer to buy the company.
In a statement, Best Buy confirmed that it has received a letter requesting due diligence and outlining an unsolicited, highly conditional indication of interest from Richard Schulze, former chairman of Best Buy, to acquire all of the outstanding shares of Best Buy that he does not already own for a per-share price of $24 to $26.
The deal would value the company at around US$8.9 billion. News of the offer sent the company's shared up by 18% to just under US$21 per share - still below the offer price.
Richard Schulze, who resigned from the company in early June currently owns 20.1% of the company.
"There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways," Mr. Schulze said in his public letter. "After assessing all of my options, it is my strong belief that Best Buy's best chance for renewed success is to implement with urgency the necessary changes as a private company."
The company has struggled in recent years against online retailers and the emergence of flagship stores from companies such as Apple.
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