Founder offers to buy Best Buy for $8.8B, take it private
Best Buy's founder says he wants to take the electronics retailer private by buying up all of the outstanding shares he doesn't already own for $24 to $26 each.
The offer represents a 36 percent to 47 percent premium over Best Buy's current stock price, representing a $8.8 billion buyout that would be the largest in history for an American retailer.
Richard Schulze also served as the Minneapolis-based company's chairman until resigning in June amid a scandal involving its CEO.
Best Buy shares jumped 20 percent to $21.50 per share at the news, but they fell back to $19.50 by the afternoon. That's still a 10 percent gain for a stock that closed at $17.64 on Friday.
Schulze is Best Buy's largest shareholder, controlling about 20 percent of its shares.
In a letter sent to the company's board of directors on Monday, Schulze said he has already developed a plan to deal with the company's challenges and has spoken with private equity firms.
Schulze explained that he plans to finance the deal through a combination of private equity investments, about $1 billion of his own money and assuming some debt.
FOX 9 News will speak to Dave Brennan, retail expert at the University of St. Thomas, about Schulze's intentions on FOX 9 News @ 9 and find out how his plan could impact consumers and the company's 180,000 employees.