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Best Buy (BBY -2%) founder Richard Schulze is mulling whether to scrap plans for a buyout of the...

Best Buy (BBY -2%) founder Richard Schulze is mulling whether to scrap plans for a buyout of the struggling electronics chain and instead (along with other investors) obtain a minority stake, the WSJ reports. Sources claim Schulze, who owns ~20% of Best Buy, hasn't yet secured enough financing for a buyout, which is leading him to explore his options. But no decision has been made yet. The report led Best Buy to dive in the final minutes of trading after rallying earlier.
Comments (3)
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    Sneaking Schultze is trying to rob us blind, by dropping this bomb just before the market closed, and caused the price to crash, after we had faithfully supported BBY in this past month. I think his partners and he are trying to pick up more shares on the cheap, judging by the volume which bounced back (more than 10million shares transacted within the last 15min).
    13 Feb 2013, 08:54 PM Reply Like
  • Bye Bye BBY
    , contributor
    Comments (58) | Send Message
     
    Don't forget his shares also dropped. He owns 20%, I think his loss was just a little bit more than yours.

     

    Bye Bye BBY
    13 Feb 2013, 10:50 PM Reply Like
  • Tom Doyle
    , contributor
    Comments (8) | Send Message
     
    Look, folks, all this Schultze buy-out talk is noise. Stock is currently trading a 3x EBITDA. Responsible boards, just don't sell companies at valuations such as this.

     

    With new CEO and CFO, a relatively fresh store-base and a viable plan to to significant operating costs out of the business, look for the company to re-initiate a stock buy-back during the course of 2013.

     

    Mr. Schultze, like the rest of us owners, will enjoy the benefits.
    14 Feb 2013, 06:21 AM Reply Like
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