Best Buy Co. Inc.’s ex-chairman, Richard Schulze, has offered to buy the company and make it private a short time after leaving the company. His offer is reportedly being considered by the company. Some analysts feel that the offer would be accepted and would also become a source of attracting investments from other investment companies.
Presently, the company has its valuation of 8.84 billion dollars and the ex-chairman has his ownership of 20.1 percent already. He is willing to buy rest of the firm too and fully own the business. The company is not in a good position and needs support from outside to stay in business.
Richard Schulze feels that his offer is going to help the company in this difficult time. He is of the opinion that the company needs reorganization as a private firm instead of keeping its status as a public company.
"Immediate and substantial changes are needed for the company to return to its market-leading ways. 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," he said in his statement, as reported on crookstontimes.com.
Schulze is concerned about the business he founded initially in the year 1966. He sees it struggling with financial problems and dropping share price. Therefore, he has decided to buy it back and manage the issues. He wants the deal to be finalized as soon as possible so that he can begin with the rectification process.
"I am deeply concerned that further delay and indecision will cause additional loss of both value and talented leaders who are now uncertain of the company's future," Schulze said in the Crookston Times-reported statement.
Schulze is offering to pay 24 to 26 dollars per share in the buyout, much higher than the current share price of the company’s stock. Analysts are observing the scenario and think that investment firms would be interested in providing funds for the huge buyout. Some, however, feel that the company would not benefit from this buyout because there would be even more creditors of the company and its financial position would not stabilize.
The board of directors at Best Buy is looking at the options available and analyzing them to reach a conclusion about Schulze’s offer. They have not issued any statement about the offer yet. Schulze is eagerly awaiting the answer from company officials and hoping to have the decision in his favor.