It appears that Best Buy founder Richard Schulze will not be resuming control of the struggling electronics retail giant any time soon. Negotiations between the Best Buy and Schulze’s investment group have concluded without an agreement for taking the company private, sources with knowledge of the matter told The New York Times, although they cautioned that talks could resume in the future. Schulze, who founded Best Buy in 1966 and served as CEO until 2002, still owns 20 percent of the company and had proposed paying between $24 and $26 per share in cash to acquire the outstanding shares he doesn’t own — a premium of as much as 40 percent over today’s closing price of $17.50. Schulze told the company’s board last August that he would pay up to $8.8 billion for the big-box electronics chain, saying he was “deeply concerned about the direction of the company.”
Best Buy Takeover Talks End Without Deal
Author: Shelly Palmer
Shelly Palmer is Fox 5 New York's On-air Tech Expert (WNYW-TV) and the host of Fox Television's monthly show Shelly Palmer Digital Living. He also hosts United Stations Radio Network's, Shelly Palmer Digital Living Daily, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment. He is Managing Director of Advanced Media Ventures Group, LLC an industry-leading advisory and business development firm and a member of the Executive Committee of the National Academy of Television Arts & Sciences (the organization that bestows the coveted Emmy® Awards).