Best Buy Founder Richard Schulze Talking To Execs About Taking The Company Private
Best Buy Co. founder Richard Schulze is talking to several executives about taking the company private according to sources with Bloomberg.
“He is talking to people he trusts,” stated J.D. Wilson, SVP of enterprise capabilities in an interview. “There is a small group he’d like to have with him in righting the ship. He is serious as a heart attack.” Wilson’s position is being eliminated as part of Best Buy’s cuts.
Wilson was asked by Schulze if he would work for the company is a deal went through. Schulze is also attempting to recruit other executives like former CEO Brad Anderson. Anderson reportedly is interested in working for a private Best Buy.
Schulze, 71, stepped down as Best Buy chairman last month and has been talking to people about going private since. After an internal probe, Schulze failed to tell the board about allegations that former CEO Brian Dunn was having an inappropriate relationship with a female employee.
To take the company private, Schulze would need to raise between $1 and $2 billion from a private equity company and between $7 and $8 billion in debt. A Best Buy takeover would cost at least $30 per share for a total value of $11 billion.
Best Buy recently posted a net loss of $1.23 billion on revenues of $50.7 billion for the fiscal year ended March. This is their first annual loss since 1991.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry