Best Buy Founder and Former CEO Offers $8.8 Billion for the Company

Posted Wed Aug 8, 2012 at 07:00 AM PDT by Dick Ward

He says that this is a necessary step towards getting the company where it needs to be.

On Monday, Best Buy founder and former CEO Richard Schulze made his offer to buy out the company from shareholders and take it private again. The price of $8.8 billion is more than the remaning stocks are worth and includes a full billion dollars of his own money.

Shulze says that this move is essential for the company to move forward. "Bold and extensive changes are needed for Best Buy to return to market leadership," he says, adding that "the company’s best chance for renewed success will be to implement these changes under a different ownership structure."

The offer is a strong one, but the board will have to approve before anything happens. Some analysts are saying that Shulze is going to have to pony up more than what he's offering to make those long-time investors okay with the change.

Source: Time Business

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Tags: Industry Trends, Best Buy (all tags)