The Tribune Democrat, Johnstown, PA

Consumer

August 6, 2012

Best Buy founder offers to buy company, take it private

NEW YORK — Best Buy's co-founder is looking to make a buy of his own, offering to take the electronics seller private only months after leaving as the company's chairman.

Best Buy said it would consider the offer but called it "highly conditional." And analysts are skeptical that former Chairman Richard Schulze's opening offer of $24 to $26 per share would get a deal done and that it could be tricky to line up investment firms to help pay for it.

It's the latest twist in the Minneapolis company's struggles to stay relevant as more people buy electronics online. Over the past year, it has announced a major restructuring plan and fired CEO Brian Dunn amid allegations that he had an inappropriate relationship with a female employee.

Best Buy is trying to avoid the fate of its rival Circuit City, which went bankrupt in 2009, partly because of changing shopper habits.

The offer values the company at as much as $8.84 billion. Schulze already has 20.1 percent of the stock in the company, so paying for the rest of shares would mean coming up with about $6.9 billion.

Schulze resigned as chairman in May, after Dunn's departure. A company investigation found that Schulze knew about the inappropriate relationship and failed to alert the board or human resources.

Schulze had been expected to stay on the board until the company's annual shareholder meeting in June, but he resigned unexpectedly before the meeting and said he was exploring options for his hefty stake in the company. Analysts had been expecting a possible bid since that announcement.

"Immediate and substantial changes are needed for the company to return to its market-leading ways," Schulze said in a statement. "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."

Text Only | Photo Reprints
Consumer
  • Biggest student loan profits come from grad students

    This week, the Congressional Budget Office projected that the federal government would earn roughly $127 billion from student lending during the next 10 years.

    April 19, 2014

  • Smartphone kill switches are coming

    Smartphones need kill switches. It's a relatively easy solution to the pricey (and irritating) problem of smartphone theft. But who would have thought that the big carriers would team up with Apple, Google, Microsoft, Nokia, Samsung and lots of other manufacturers to voluntarily begin adding the technology by July 2015? The cooperative spirit! It makes so much sense!

    April 19, 2014

  • Consumer spending on health care jumps as Affordable Care Act takes hold

    Nancy Beigel has known since September that she would need hernia surgery. She couldn't afford it on her $11,000 yearly income until she became eligible for Medicaid in January through President Barack Obama's signature health care law.

    April 19, 2014

  • E-Cigarettes target youth with festivals, lawmakers say

    The findings, in a survey released Monday by members of Congress, should prod U.S. regulators to curb the industry, the lawmakers said. While e-cigarettes currently are unregulated, the Food and Drug Administration is working on a plan that would extend its tobacco oversight to the products.

    April 16, 2014

  • DayCareCosts.jpg Day care's cost can exceed college tuition in some states

    Most parents will deal with an even larger kid-related expense long before college, and it's a cost that very few of them are as prepared for: day care.

    April 13, 2014 1 Photo

  • Millions of Android phones, tablets vulnerable to Heartbleed bug

    Millions of smartphones and tablets running Google's Android operating system have the Heartbleed software bug, in a sign of how broadly the flaw extends beyond the Web and into consumer devices.

    April 13, 2014

  • 2012_Mazda6_--_NHTSA.jpg Brakes, steering and...spiders? What's behind the latest auto recalls

    11 million vehicles have already been recalled in 2014 for everything from power steering failure to vulnerability to spider attack.

    Check out the full list of 2014 recalls.

    April 11, 2014 1 Photo

  • news_amazonfiretv.jpg Amazon introduces Fire TV to challenge Apple in living rooms

    Amazon.com Chief Executive Officer Jeff Bezos is stepping up efforts to win over customers in their living rooms with a $99 TV box for watching digitally delivered shows and movies, challenging Apple's TV device.

    April 3, 2014 1 Photo

  • news_zuckerberg.jpg The logic of Facebook's multibillion-dollar shopping spree

    Yet again, Facebook has spent a gaudy sum of money to buy a hot startup. This time, it's virtual reality pioneer Oculus VR, at a purchase price of $2 billion. And don't be surprised if Mark Zuckerberg continues on his buying spree.

    April 2, 2014 1 Photo

  • money.jpg Poor aren't alone in living check to check

    When you hear the term "paycheck to paycheck," you probably think of low-income households struggling to make ends meet. That's even the title of a new HBO documentary highlighting the plight of America's working poor.

    March 26, 2014 1 Photo

Poll

Would you like to see the Johnstown Community Corrections Center remain open after its lease runs out on Oct. 11, 2015?

Yes
No
I'm not sure
     View Results
Order Photos


Photo Slideshow

House Ads