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It looks like Best Buy could find itself in the sale aisle.
Best Buy founder and former chairman Richard Schulze is reportedly eyeing a move to sell his 20 percent stake in the company, the Wall Street Journal reports.
But Schulze would rather not do that and instead said he prefers to take Best Buy’s shares off the market, making it, once again, a privately held company. For Schulze, that’s a better move than outright selling the operation.
But neither option is going to be easy.
On paper, Best Buy is worth $8 billion, and, according to the Wall Street Journal, Schulze could be looking for a $11 billion buyout to convince other stockholders to sell their shares as well.
But finding interested buyers could be tough. Best Buy’s stock value has dropped 38 percent in the last year as online sales from companies like Amazon have continued to ravage its bottom line. Best Buy announced a $1.7 billion quarterly loss in March and, in April, announced that it would be closing 50 stores before the end of the year. Those aren’t typically the kinds of numbers buyers and investors go crazy over.
Investors, however, did seem to like the news, popping Best Buy’s stock to 4.7 percent by the end of trading on Tuesday.
Photo: SeanPavonePhoto / Shutterstock
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