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Best Buy Founder Makes $8.5 Billion Bid To Take Company Private

Unknown Lamer posted more than 2 years ago | from the escaping-those-annoying-shareholders dept.

Businesses 300

zacharye writes "Best Buy founder and the company's largest shareholder Richard Schulze has offered as much as $8.5 billion to take the company private. Schulze had been rumored to be preparing a takeover offer for some time, and he recently assembled a team of executives that will run the company if his buyout offer is approved. His offer amounts to between $24 and $26 per share, a premium of as much as 47% over Best Buy's stock price at Friday's close."

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Riiight... (3, Interesting)

Anonymous Coward | more than 2 years ago | (#40900573)

Title should read "Best Buy Founder Tells World He Will Try To Find $8.5 Billion To Take Company Private"

I doubt he gets it.

Re:Riiight... (4, Interesting)

sarysa (1089739) | more than 2 years ago | (#40900619)

Good point, his net worth is only $2.5bn apparently [wikipedia.org] , and I'm curious as to who his backers could possibly be for a company that's been tanking lately. On the other hand, with all the cheezy, unimaginative, and downright obnoxious ploys Best Buy has implemented in the last few years, I can see where losing the stress of those "pesky shareholders" could work in the company's favor. I'd be willing to step into a Best Buy again maybe 6 months after it went private just to see if it has improved. (as it stands now, I'd rather go to a used car lot)

Re:Riiight... (4, Interesting)

ganjadude (952775) | more than 2 years ago | (#40900637)

dead serious, I have a 100$ best buy card.. Ive had it for 2 years.

today i spent over an hour in my local best buy trying to find something for under 500$ to buy and i simply could not do it. 5-8 years ago, best buy was "the place" to be for a retail store. today, I have free money and cant buy something.

Re:Riiight... (5, Insightful)

Sponge Bath (413667) | more than 2 years ago | (#40900655)

I have a 100$ best buy card.

That will get you a 6' Monster brand HDMI cable, but it's not enough for the extended warranty.

Re:Riiight... (1)

Anubis IV (1279820) | more than 2 years ago | (#40900735)

That will get you a 6" Monster brand HDMI cable, but it's not enough for the extended warranty.

Fixed that for you.

Re:Riiight... (0)

Anonymous Coward | more than 2 years ago | (#40901497)

i saw what you did there

Cables (0, Flamebait)

Anonymous Coward | more than 2 years ago | (#40900821)

Actually this sort of garbage is why I refuse to go into a Worst Buy

A friend of mine recently had some problems with some SATA cables included with a case in a build he was doing for some family member. Nothing serious. The cables that came with the case were made with flimsy components and were only rated at 3 Gb/s. Rather than risk things he wanted to buy good cables and while he was at it he wanted the 6 Gb/s cables, because hell, why not?

Not only did Worst Buy not have any SATA cables, their 'senior geek squad representative' didn't understand that he didn't want Molex power cables for about 10 minutes. Then they offered to order them for him. Total cost for 2, count them TWO 18 inch SATA cables? $57.63, and it would be about a week before they arrived. Instead, be bought 10 (bulk pricing) cables off Newegg or Monoprice (can't recall) for less than 50 dollars including shipping, and they arrived just under 48 hours after submitting his order.

They are higher quality cables than what he could have ordered through Worst Buy, they arrived faster, it took him less than 3 minutes to make his purchase vs nearly a half hour of frustration, and they fucking glow in the dark.

Is there ANY good reason to go into that hellhole of a store?

Re:Cables (2)

evafan76 (2527608) | more than 2 years ago | (#40901155)

Is there ANY good reason to go into that hellhole of a store?

That one time when I can't find something at Staples/Office Depot, am too lazy to drive to MicroCenter, but want it NOW, so ordering it from Amazon or NewEgg is not an option.

This happens about once every 2 years

Re:Cables (0)

Anonymous Coward | more than 2 years ago | (#40901301)

Move somewhere with a Fry's.

Re:Cables (SATA != Joystick) (3, Funny)

toygeek (473120) | more than 2 years ago | (#40901273)

I went in there, in desperation, looking for a SATA controller. They kid they had on the floor says "oh all the controllers are over here" and took me to the joysticks and game pads.

That was the last time I went into Best Buy for *anything*. I refuse to walk into that store.

Re:Cables (3, Insightful)

patchmaster (463431) | more than 2 years ago | (#40901409)

Cables are to Best Buy as soda is to McDonald's.

And, actually, as Best Buy prices go, $57.63 for TWO SATA cables isn't that bad. A couple years ago I had an immediate need for a USB cable. They wanted $50 for ONE. I decided my need wasn't that great. Ordered ten online (to meet minimum order requirements) and got them for $12 plus shipping. I was tempted to take the other nine and hang out in front of Best Buy offering to sell them for "half price".

Re:Cables (0)

Anonymous Coward | more than 2 years ago | (#40901563)

and they fucking glow in the dark.

Made in Japan[TM]

Re:Riiight... (2)

ganjadude (952775) | more than 2 years ago | (#40900829)

no joke, i wanted a sound card I like the old sound blaster+ i bought there around 08,payed 200 at the time. had an XLR port, 2 1/4 inch mic inputs and like 8 other inputer i dont care about. They had tablets, all in 1 PCs a section dedicated to apple. but all the hardware i used to buy, they dont offer, although they did try and convince me that "building your own is over, and its cheeper to buy an all in one" I just had to laugh (similar to the way radioshack used to have transistors but now they just have phones)

Re:Riiight... (0)

Anonymous Coward | more than 2 years ago | (#40900937)

The RadioShack nearest to me has all sorts of electronic parts. The guy I know who works there even has all the colors memorized for the different specs (such as the resistor color codes and fuse amperage) and he is insanely knowledgeable in general. Maybe that is what I get for living in a college town.

Re:Riiight... (2)

ganjadude (952775) | more than 2 years ago | (#40901009)

I really wish that were true by me. My radio shacks (within a 20 mile radius) have cell phones, HP laptops and 2 year old desktops, and 10 year old RC cars

Re:Riiight... (3, Interesting)

NFN_NLN (633283) | more than 2 years ago | (#40901091)

...although they did try and convince me that "building your own is over, and its cheeper to buy an all in one" ...

If you don't care about expandability or the quality of components; then he is correct.
I technically haven't bought a new computer since the 90's. I just keep upgrading components when the price/timing is right for me. Although, nowadays you often have to buy the MB/CPU/RAM together so it almost seems like you're buying a new computer.

It does appear that a pre-assembled computer is cheaper, but they always include some junk I would never buy. A motherboard with no 16 lane PCIe (so you can't upgrade the video). Or an HDD where the next size up would have only cost $10 more for 50% more capacity, etc, etc. I know they're just trying to offload inventory at the lowest price point; which for 90% of people is all they care about.

So technically a pre-assembled computer is cheaper.

Re:Riiight... (0)

Anonymous Coward | more than 2 years ago | (#40901119)

6"

Re:Riiight... (2, Informative)

Anonymous Coward | more than 2 years ago | (#40900711)

dead serious, I have a 100$ best buy card.. Ive had it for 2 years.

  today i spent over an hour in my local best buy trying to find something for under 500$ to buy and i simply could not do it. 5-8 years ago, best buy was "the place" to be for a retail store. today, I have free money and cant buy something.

I went in looking for an hdmi splitter and good god they wanted 120$ for one.

I'm buying online lol

Re:Riiight... (2, Informative)

Anonymous Coward | more than 2 years ago | (#40900747)

I worked there in 2003. They've always been a place for big ticket items but buying any kind of accessory there was an effort in being extremely stupid. They don't make any money on computers, tvs, appliances, etc. They make all of it on extended warranties and accessories. Most people (not I didn't say smart people), research and research prices on the big ticket item (they'll spend hours to save $10) but then unknowingly spend 3x as much as they should on their accessories.

Re:Riiight... (4, Insightful)

dynamo52 (890601) | more than 2 years ago | (#40900855)

I've always considered Best Buy a terrific example to illustrate the quote "No one ever went broke underestimating the intelligence of the American public."

Not stupidity, desperation... (2)

SuperKendall (25149) | more than 2 years ago | (#40901139)

I've always considered Best Buy a terrific example to illustrate the quote "No one ever went broke underestimating the intelligence of the American public."

It doesn't have to be about fooling anyone though. They can get quite a lot of business just through desperation... sometimes you need a cable right now, and there's Best Buy.

The problem Best Buy has is that they are starting to stock fewer of those desperation items. I've not been there in years, even when desperate, because it became increasingly unlikely they would have what I was looking for.

Re:Not stupidity, desperation... (2)

arth1 (260657) | more than 2 years ago | (#40901411)

It doesn't have to be about fooling anyone though. They can get quite a lot of business just through desperation... sometimes you need a cable right now, and there's Best Buy.

The Radio Shack used to be like that, except that they had a reasonable markup of perhaps up to 20% over normal price. Not 200%.
After they lost the "The", they have gone downhill, and are now completely useless. I ran out of solder, and didn't even try to find that at Best Buy. I figured I'd stop at Radio Shack, and pay a little more than I normally do.
"Oh, we don't carry that, but we can order it for you." Um. Had I entered the wrong store, or been transported to a weird parallel universe?

It's sad to say, but I really miss the old TRS, and even CompUSA, Tweeter and CIrcuit City. Because Best Buy and RS are the pits, whether you want computer stuff, generic stuff, or AV stuff.

The only reason I see to visit a Best Buy is to say "See those pimply faced desperate people in blue shirts? That's who McDonalds didn't want, and where you'll end up if you don't start studying."

Re:Not stupidity, desperation... (2)

Opportunist (166417) | more than 2 years ago | (#40901419)

Dead on. And personally, I think it's incredibly stupid of them to drop those "desperation" items.

Let's be honest here, even my less computer-savvy friends have caught on that buying online not only means you're usually getting it cheaper but also delivered, often at no extra cost. They can shop around for the best item and read user recommendations as well as the best price. And no failing brick&mortar store should call this a bad thing, transparency is one of the big corner stones that free economy relies on (just 'til the internet it was a myth and dream...).

But ordering online has a mighty drawback: It takes 2-3 days to arrive. What if I need it NOW? Like that router that just failed, the headphones the cord of which my bumbling friend tripped over and broke, or the extra controller for the new console daddy forgot to order and has now two fighting kids at his hands? It can cost 50% more than it does online and people would still buy it, worse, they would buy WHATEVER item you have in stock simply because they don't have the luxury to shop around for the best one available, they need one NOW.

Nobody is going to get his new fridge there. And not only 'cause it takes a few friends to get it home...

Re:Not stupidity, desperation... (1)

patchmaster (463431) | more than 2 years ago | (#40901465)

Given online prices and quality (if you know the right places to shop) combined with next day delivery in many areas, it's gotten to where you need to be REALLY desperate to pay Best Buy prices for interconnect parts. When they're charging literally 10 to 20 times what it costs to buy an equivalent item online, that instant gratification thing is really costing you.

Re:Riiight... (2)

v1 (525388) | more than 2 years ago | (#40901079)

They've always been a place for big ticket items but buying any kind of accessory there was an effort in being extremely stupid. They don't make any money on computers, tvs, appliances, etc. They make all of it on extended warranties and accessories.

That's typical of most local stores. They don't make much margin on big things, but make very good margin on little things. When something is small, a high percentage margin doesn't add many hard digits to the price. Look at a computer, maybe wholesale $1125, sells for $1199, 7% margin. A router wholesales for $26, sells for $35, 35% margin. An ethernet cable wholesales for $1.85, sells for $7.99, 330% margin.

That's how most local businesses work. People don't look at the margin as a percentage, they look at it as a dollar amount per item. The extra $75 tacked onto the computer really looks like a lot more money lost than an extra $9 on a router, or $6 on a cable. But the reality is that the cable is a massive ripoff by comparison. So they're just gaming human nature here.

But looked at a different way... the shelf space taken by a computer vs a router doesn't differ a whole lot. And that space is your resource to work with. So it's not so much that you have to get margin per item, but you have to make the retail space pay for itself. And that doesn't vary a lot between items. A $2500 computer may take up as much space as a $500 computer. The rent for the building isn't set based on which model of computer you have on the shelf. So both the $500 and the $2500 computer need to bring in the same amount to cover their way, regardless of margin. So naturally the smaller items require a higher markup. If you have a space in your store where a space is netting you $40/month, you may have another identical size space in your store that is raking in $100/month, and that probably means you need to adjust some margins or change your product selection.

Re:Riiight... (2)

russotto (537200) | more than 2 years ago | (#40901299)

An ethernet cable wholesales for $1.85, sells for $7.99, 330% margin.

Which would be not so bad, for someone who just wants one cable now. But Best Buy won't sell it for $7.99. They'll sell it for $18.99. They've taken the strategy to an extreme and pissed off a lot of people.

Re:Riiight... (1)

Opportunist (166417) | more than 2 years ago | (#40901433)

19 bucks for an ethernet cable? Before I buy that I risk enabling WiFi.

Re:Riiight... (0)

Anonymous Coward | more than 2 years ago | (#40901029)

Go for video games. They're generally the same price everywhere.

Re:Riiight... (0)

Anonymous Coward | more than 2 years ago | (#40901109)

Went in There on Sunday to look for teh wife a new keyboard and there were 8-9 to choose from. Picked one, scanned it with my iPhone and found out it was on sale for $20 cheaper at a Staples a mile away.

Re:Riiight... (1)

pspahn (1175617) | more than 2 years ago | (#40901173)

I had one of those a few years ago. I think someone got it for me for Christmas because I was "into computers or something".

I had it for quite some time, and then somewhere along the line I realized I needed a new motherboard. I decided to check out what they had in stock and ended up getting an Asus board from them.

It's worked well, but I would likely have been better served to sell the card and get a motherboard that wasn't an ugly step-child model, since I have been unable to upgrade the memory to the advertised 16Gb. Hell, I've spent a few hundred bucks on a few different sets of DIMMS trying to get the board to 16Gb to no avail.

Quite an expensive gift card it turns out to be.

Re:Riiight... (0)

Anonymous Coward | more than 2 years ago | (#40901309)

Sounds like a CPU limitation. You may need a new CPU to upgrade... I had to change my laptop's CPU to get it up to 32GB from the 16GB wall.

Re:Riiight... (4, Informative)

Gothmolly (148874) | more than 2 years ago | (#40901275)

iTunes cards - basically you need BB to convert your useless currency (their gift card) into usable currency (iTunes) - which you can then give away as presents or burn through yourself.

Re:Riiight... (1)

elrous0 (869638) | more than 2 years ago | (#40901051)

with all the cheezy, unimaginative, and downright obnoxious ploys Best Buy has implemented in the last few years,

How about the fact that every time I go in that store, there seem to be about 15 employees standing around the service desk bullshitting around doing nothing (and even more wandering around the store doing nothing), all while I have to stand in line forever at the ONE REGISTER that's open?

Re:Riiight... (1)

NFN_NLN (633283) | more than 2 years ago | (#40901231)

How about the fact that every time I go in that store, there seem to be about 15 employees standing around the service desk bullshitting around doing nothing (and even more wandering around the store doing nothing), all while I have to stand in line forever at the ONE REGISTER that's open?

True story, Walmart actually beat the single open register, and I'm not joking.

Some of the Walmarts have an automotive department (Mr. Lube). Technically the same building but it is an add-on with separate tills, entrance, etc.
I went in on three separate occasions and there was literally no one there. Once during a weekend, once during a weekday and once on a weeknight. The other departments would touch automotive and when I called in and got transferred to automotive the phone just rang and rang.

It was a sweet deal so I wanted to get it, but there was literally no one there to get the tires or pay. So technically there were ZERO REGISTERS open!

Bill Burr actually has a stand routine about grocery stores in the future. One day there won't be any staff out front. When that happens... "f*ck it, I'll just walk out without paying. I tried paying... but there was no one there.." :)

http://www.youtube.com/watch?v=8Z4p9C9oJQ0 [youtube.com]
Around 2 minutes mark...

Re:Riiight... (1)

Latentius (2557506) | more than 2 years ago | (#40901335)

That would be one register at the front...and probably one also in the PC department, and one in the videogame department, and a couple at Customer Service (yes, they can do checkouts)...and perhaps even a few more beyond that, depending on the size of the store.

He will get it. (5, Insightful)

Anonymous Coward | more than 2 years ago | (#40900803)

Title should read "Best Buy Founder Tells World He Will Try To Find $8.5 Billion To Take Company Private"

I doubt he gets it.

I have no doubt that he will.

First he's the founder and billionaire. That means he's got a "track record" among the money crowd.

He will have a plan when he goes shopping for money.

He's the founder who'll rescue the company.

The money guys will be drooling over all the fees, commisions, and every other way they'll make a fortune off of this guy - and they will be right there to help him get his money.

He will can hundreds if not thousands of people, restructure debt, and other things that will stick it up the ass of the working and middle class.

Oh, and he'll probably will NOT have to put up much, if any, of his own money.

Those people live in a different world than you or me. If they get into trouble with debt, the banks kiss their ass and help them to deal with it even if it hurts them. And no one calls them "irresponsible", "free loader" or any of those names. And if need be, some well placed calls to people in Congress and some really cheap taxpayer money will come their way.

They call them "job creators". And if you think he got where he is by hard work and some risk taking, I have a bridge in Brooklyn to sell you.

Now, I'm gonna go cry myself to sleep.

He is a job creator (0, Redundant)

SuperKendall (25149) | more than 2 years ago | (#40901165)

They call them "job creators".

Which is accurate.

You may not like how he comes by his money, or be jealous at how easily he can raise billions of dollars.

But the simple truth is that without someone buying it, Best Buy and all the jobs it offers now will go away in a few years. With a fresh multi-billions of dollars, and a good plan those jobs could be around indefinitely.

Re:He is a job creator (5, Insightful)

Anonymous Coward | more than 2 years ago | (#40901251)

"Creating jobs" at Best Buy right now is like hiring people at a buggy whip factory in the 1930s to escape the depression.

(Never mind the economic absurdity of the whole "job creators" meme in the first place).

Re:He is a job creator (1, Insightful)

espiesp (1251084) | more than 2 years ago | (#40901469)

Yeah, because it's feasible to have a country full of nothing but doctors and executives? FFS, SOMEBODY has to scrub the toilet, grow my vegetables, shovel the cow poop, and yes, work retail.

Thats one of the issues we have in this country today. Everybody thinks that those jobs are below them, so they opt not to work at all and game the welfare system instead because somehow that's less embarrassing and sadly probably is more lucrative...

 

Re:He is a job creator (5, Insightful)

Anonymous Coward | more than 2 years ago | (#40901561)

Your comment leads me to infer that you believe:

- People are not embarrassed to be on welfare
- People make more money on welfare than on a minimum wage job
- Either: the few people who somehow "game the welfare system" make it not worthwhile for those who use it as a legitimate safety net
- Or: most people who are on welfare are gaming the system and riding the gravy train
- Welfare is cheating you out of your hard-earned money
- You, yourself, will never need a safety net

Re:He is a job creator (3, Interesting)

Opportunist (166417) | more than 2 years ago | (#40901467)

Jobs are a bit like energy, you can't really "create" them. Either there is a market or there is not. If there is a market, there will be jobs. By the very nature of the market laws. Someone will come and want to fill that market. And to do that he needs to hire people. If he doesn't hire people, then he will not be able to saturate the needs of the market and someone else will try his hand at it, too.

So please stop praising people who "create" jobs like they're the next coming of the messiah. The only reason they "create" jobs is that creating these jobs and hiring people to fill them is the necessary evil to them on their quest for money. If they could, they'd instantly cut all those employees because essentially they're just costing them money.

Re:He is a job creator (4, Insightful)

SuperKendall (25149) | more than 2 years ago | (#40901573)

Jobs are a bit like energy, you can't really "create" them.

I own a business. I can create a job by choosing to hire someone. The job is real; a person would earn money from doing it.

If jobs could truly not be created there would be a fixed number at all times. That is not so.

If there is a market, there will be jobs.

Only if people are willing to enter that market as providers. There is NO market before someone decides there is a possibility of earning money performing some task or offering some service, but it's up to the job creators.

It's up to job creators to enter a market and to create the jobs.

Surprise. (1)

cpu6502 (1960974) | more than 2 years ago | (#40900577)

Last rumor I heard (here), he would take a golden parachute to escape before BB crumbled.

Re:Surprise. (4, Interesting)

JoeMerchant (803320) | more than 2 years ago | (#40900679)

You get old enough (and rich enough) and it's not about the ROI anymore, it's about making 'em do it they way you tell 'em to.

Re:Surprise. (1)

Anne_Nonymous (313852) | more than 2 years ago | (#40900707)

The guy already owns 20% of the company, so I think he has more of an interest in its success than just his paycheck.

Re:Surprise. (1)

notgm (1069012) | more than 2 years ago | (#40900783)

if he's makes a claim that he's going to buy out shares at a 47% premium, and owns 20% already, sounds like he's just doing a fancy wide-screen director's cut of the old pump-and-dump.

duh.

He has more incentive to save his 20% ! (1)

Taco Cowboy (5327) | more than 2 years ago | (#40901473)

The guy already owns 20% of the company

 
That just gave him even more incentive to not let his 20% goes down the drain !!
 
Plan works like this - He goes in and buys up the entire company, with other-people's-money
 
Then he "restructures" the company, selling off "non-core-subsidiaries", acquires some other companies and merges them into his now "core-operation", and in the process a lot of employees will see themselves being "made redundant" (ie, fired), before the guy turn around and sell off the whole thing (including his initial 20% stake) to some "investment trust", or something like that
 
He will end up laughing all the way to the bank, and many employees will end up jobless
 
That's the way it is, and that's the way it will be.
 
We are living in a different world now.
 
"Fairness", "Justice" and "Equality" no longer mean anything
 
So, if you want to succeed, you must think and act like those in the 0.1 percentile
 

Why hasn't this pushed the stock price up? (1)

damn_registrars (1103043) | more than 2 years ago | (#40900591)

Today Best Buy closed at $19.99 [yahoo.com] .

Re:Why hasn't this pushed the stock price up? (1)

zero.kalvin (1231372) | more than 2 years ago | (#40900615)

I am baffled ( I do understand it ) by this behavoir, how everyone immediately hurries to buy shares in some company just because someone shared his interest in it. I do understand that it is a way to gain money but I can't help but to think of hyenas each time I see this happen.

Re:Why hasn't this pushed the stock price up? (0)

Anonymous Coward | more than 2 years ago | (#40900647)

It's because automated high speed trading reads news tickers and goes "COMPANY X ... BOUGHT BY... COMPANY/NAME Y FOR Z/SHARE" and immediately puts in bids for Company X to bid it up to Z.

Re:Why hasn't this pushed the stock price up? (2)

MyLongNickName (822545) | more than 2 years ago | (#40900699)

Why are you baffled by this? Is I own object x, and I know that suddenly someone is interested in it for 50% more than I currently can sell it for, then the price goes up. The only reason it hasn't jumped more is because this isn't a firm bid, but simply interest. The market is factoring in how credible this interest is and what the odds are of it coming to pass. Simply markets trying to price a security in a volatile situation.

Re:Why hasn't this pushed the stock price up? (1)

geoskd (321194) | more than 2 years ago | (#40900913)

Why are you baffled by this?

Because as often as not, its a hoax or a scam. Those who jump skivvy to throw their money at it usually get burned: See Facebook.

-=Geoskd

Re:Why hasn't this pushed the stock price up? (1)

MyLongNickName (822545) | more than 2 years ago | (#40900931)

So, you are suggesting that the founder is engaging in a scam? I'm confused...

Re:Why hasn't this pushed the stock price up? (0)

Anonymous Coward | more than 2 years ago | (#40901257)

I'm confused...

You are quite easily confused.

Re:Why hasn't this pushed the stock price up? (0)

Anonymous Coward | more than 2 years ago | (#40901327)

It looks like there's two possibilities here:

1) guy with 20% buys the other 80% at a markup.
2) guy with 20% convinces everyone else he's going to buy the other 80% at a markup, in the resulting confusion, unloads his 20%.

Re:Why hasn't this pushed the stock price up? (1)

khallow (566160) | more than 2 years ago | (#40901343)

Someone pointed out that he could be pumping and dumping. Although that's a pretty blatant and illegal combination of insider trading and market manipulation. How does he keep the money? Probably would be better return to just sell off his share slowly and retire during the process.

I think it's fairly straight forward. He buys out the company for a modest mark up, runs it well for a time, and then sells out for significant gain when the company is made public again.

Re:Why hasn't this pushed the stock price up? (1)

MyLongNickName (822545) | more than 2 years ago | (#40901357)

As you indicate, it would really be hard to pump and dump in his position. So, I think your second assertion is the correct one.

Re:Why hasn't this pushed the stock price up? (1)

Kergan (780543) | more than 2 years ago | (#40900919)

I am baffled ( I do understand it ) by this behavoir, how everyone immediately hurries to buy shares in some company just because someone shared his interest in it. I do understand that it is a way to gain money but I can't help but to think of hyenas each time I see this happen.

Then again, this one has "we're looking for a few dumb fucks to actually fund this mess irrespective of the shitty economy" written all over it.

Re:Why hasn't this pushed the stock price up? (2)

BKX (5066) | more than 2 years ago | (#40900665)

It did. By several dollars. On Friday the stock was only trading in the $18 range. Today it's been in the low 20s, closing just shy of $20. In fact, Yahoo, right on the linked page, says it's up 2.35 from Friday's close, more than 13%. I'd say that's up quite a bit.

Oh, now I see the source of the confusion. That 24-26 range in the summary is the range that the Best Buy founder offered to pay to buy out the company, not the actual price of the stock.

Re:Why hasn't this pushed the stock price up? (0)

Anonymous Coward | more than 2 years ago | (#40901107)

Can you explain to me why he didn't just buying up the stock without announcing it, let the price float up, then stop, and continue? Why the whole "announce" instead of just BUY?

Re:Why hasn't this pushed the stock price up? (3, Informative)

LynnwoodRooster (966895) | more than 2 years ago | (#40901203)

Insider (those who typically own more than 1%, or are active in the leadership of a company) trades - either sells or buys - must be announced at least 1 quarter in advance (SEC rules). Additionally, since he doesn't have all the capital available himself, he needs to get others to invest with him, and given the size of placement it may need to be publicized as well (SEC rules).

Re:Why hasn't this pushed the stock price up? (1)

Kylon99 (2430624) | more than 2 years ago | (#40900681)

It could be because the majority of people interested in the stock believe that the deal isn't likely to go through, perhaps? But otherwise yes, I've seen the prices usually go right to the buyout price. If the deal should go through the price should instantly rise to that amount and the Bollinger Bands (which measure standard deviation) would immediately narrow.

Re:Why hasn't this pushed the stock price up? (1)

Anubis IV (1279820) | more than 2 years ago | (#40900727)

Umm...it had its largest single-day gain since 2009. I'd call that being pushed up by the offer, wouldn't you? That it is still short of the offer isn't entirely surprising, but considering it started much lower earlier today, reaching where it did was rather significant.

The next circuit city. (-1)

Anonymous Coward | more than 2 years ago | (#40900599)

I thought the founder is always the owner? BB sucks anyway especially their geeksquad scam.

Re:The next circuit city. (2)

Anubis IV (1279820) | more than 2 years ago | (#40900683)

It's a public company. While he's the largest shareholder (i.e. owns the most of it), there is no single owner of the company at this time, since other people own shares as well.

Re:The next circuit city. (5, Interesting)

Anonymous Coward | more than 2 years ago | (#40900887)

Full disclosure here: I work on a Geek Squad, one of the few women in the business. Maybe I'm just lucky (large store in NYC, and no, I WON'T say which) but this GS seems a lot better than most of them. The dead weight from the last couple of hiring cycles is long since gone and we've all become a sort of piecewise machine. They also have me selling a fair amount, despite my habit of getting customers cheaper items and discouraging them from certain services and products ("Don't buy an ethernet cable here, don't bother with the restore discs, you can make those yourself and here's how").

The GS is not the problem. We're hamstrung by SOP for the most part. Left to our own devices we'd be giving much better customer service. But there are Ways Of Doing Things, which must be followed on pain of pain. My supe, bless him, allows us to bend the rules just short of breaking in the interest of customer service, and we get very high customer service ratings for a GS.

I guess the point is, we're not all bad. And the stupid high school kid in Bumblefuck, MO isn't representative of the entire brand. If you want good service, BE INFORMED. Ask us questions. Don't be afraid of the machines; they're just tools. Make use of us; we in the GS are the one contingent with a triple-digit IQ in the store. You can get much more than the brochures say.

Re:The next circuit city. (0)

Khyber (864651) | more than 2 years ago | (#40901149)

"Make use of us; we in the GS are the one contingent with a triple-digit IQ in the store"

BZZZZZT. Were that the case I'd have not been the lead repair specialist for Geek Squad fuckups at Solectron in Memphis.

The music gear section bypassed you in knowledge. They could at least say why I wanted a ribbon mic versus condenser mic. Your idiots told me I had to give them my laptop so they could install drivers for my LCD to be replaced (we haven't needed drivers since 1998 for a plug and play monitor with EDID. This was 2000 fucking 9.)

Give me a fucking break.

Re:The next circuit city. (0)

Anonymous Coward | more than 2 years ago | (#40901225)

I agree with you. Years ago I worked for a contractor who performed the actual warranty laptop repairs for Best Buy. Among the things we saw that the geek squad could not resolve was malware removal and OS reinstalls.

We had a boneyard and often cannibalized from it, repairing motherboards with heatguns and soldering irons instead of replacing them. Since it was warranty repair, the customer had no guarantee they were getting new parts and more often than not didn't. Customers with intermittent freezes got maybe a dab of heatsink paste and a reseat, no actual troubleshooting. Computers returning 2 or 3 times for the same issue(along with angry notes from the customer) was common. There was no process, no standardized way to acquire parts, oh man. It was a fucking mess...and I doubt that things have changed for the better! Goddamn, I'm glad I have a real job!

-- Ethanol-fueled

Re:The next circuit city. (0)

Anonymous Coward | more than 2 years ago | (#40901377)

Yeah, as someone that works at the facility that replaced your previous employer, it did some crap-ass work. You wouldn't believe how many laptops we got that were previously repaired by that company that were missing processors, memory, super glued together and worse.

To address your point about not using new parts, they don't really exist outside of MFG warranty, except for very small amounts that the ODM creates for themselves. Hence remanufactured or re-certified parts.

Re:The next circuit city. (1)

Culture20 (968837) | more than 2 years ago | (#40901541)

"Make use of us; we in the GS are the one contingent with a triple-digit IQ in the store"

BZZZZZT.

To be fair, she did say "a" triple-digit IQ. That person is just on FMLA.

Re:The next circuit city. (1)

Nocturnal Deviant (974688) | more than 2 years ago | (#40901215)

I resent your use of Bumblefuck Missouri as a base point.....I was born and raised somewhere pretty accurate to the term "Bumblefuck," and I have a Bachelors from MIT...
  "Bumblefuck" is not an accurate depiction of ANY brand. Its when their superiors start hiring salesman over knowledgeable people and give up everything just to get money.

Also known as "selling out" in other business areas.

Re:The next circuit city. (1)

Culture20 (968837) | more than 2 years ago | (#40901557)

..when their superiors start hiring salesman over knowledgeable people and give up everything just to get short term money. They'd have a lot more money now if they had stuck with the knowledgeable people and payed them well.

Re:The next circuit city. (1)

Celarent Darii (1561999) | more than 2 years ago | (#40901455)

I think in general the more you know the people the better the expectations. The problem with most chain stores (or large vendors) is that the personel are always temporary and very litle invested in their product or their relationship with the customer. This is not necessarily the companies fault, but the fact that most view their job as just something to get through summer already means quality will be determined by 'procedures' rather than human contact and trust.

Kudos to your supervisor for being more of a human being than most chain stores allow. Wish more were like him.

Fustrating... (0)

Anonymous Coward | more than 2 years ago | (#40900667)

I was only able to scrounge up 8.35 billion (maybe if I check the couch cushions again)...

sucker (0)

Anonymous Coward | more than 2 years ago | (#40900737)

sold to you

Wouldn't have to ask me twice (4, Insightful)

oakgrove (845019) | more than 2 years ago | (#40900777)

His offer amounts to between $24 and $26 per share, a premium of as much as 47% over Best Buy's stock price at Friday's close..."

Um, SOLD!!

Typical best buy (5, Funny)

Anonymous Coward | more than 2 years ago | (#40900835)

Everything there is at least 40% over what it costs everywhere else.

He should have bought it through newegg or amazon, it would save him a few billion.

Re:Typical best buy (0)

Anonymous Coward | more than 2 years ago | (#40901219)

I recently bought a canon T4i at best buy....checked prices at the store on my phone and couldn't do any better so I walked out camera in hand, $0 premium and I could try before I buy-ed

No story on the Sikh temple shooting? (-1)

Anonymous Coward | more than 2 years ago | (#40900907)

And you call yourselves relevant? I work with Sikhs everyday, wonderful people. Such a tragedy.

Ohhh but what's important here? Best buy? Free software? NASA?

I thought this was the place for "stuff that matters".

Feh.

There is a "Submit Story" link. Please use it. (4, Informative)

Randwulf (997659) | more than 2 years ago | (#40901033)

If there is something you feel feel should be on Slashdot, there is a "Submit Story" link at the bottom of the page. I suggest you use it instead of posting an off topic comment.

Re:There is a "Submit Story" link. Please use it. (-1)

Anonymous Coward | more than 2 years ago | (#40901089)

You seem to have missed my point. Thanks for the suggestion. /not

I like OT, so piss off.

Re:There is a "Submit Story" link. Please use it. (-1)

Anonymous Coward | more than 2 years ago | (#40901205)

Here is "stuff that matters".

http://www.nypost.com/p/news/local/brooklyn/hero_klyn_shooting_focused_temple_PWG9ksEvMWyv1msd29uuVI

"The hero Brooklyn-born cop who took up to nine bullets trying to stop an alleged racist madman shooting up a Sikh temple in suburban Milwaukee was more worried about other victims than himself.

"He told them to go into the temple,” Oak Creek, Wis., Police Chief John Edwards said today about Police Lt. Brian Murphy, 51, whose brother, Terry, is a retired NYPD detective.

Brian Murphy had waved off help from fellow officers Sunday during the carnage at the Sikh Temple of Wisconsin.

His former boss, ex-Oak Creek Police Chief Thomas Bauer, told The Milwaukee Journal-Sentinal that he's not surprised."

Re:There is a "Submit Story" link. Please use it. (-1)

Anonymous Coward | more than 2 years ago | (#40901245)

Randwulf: What matters to Randwulf?

"I don't much care what Microsoft has to say about anything. What I am curious about is how much Chrome OS will cut into Windows market share once it is finally launched. I don't want speculation -- wake me up when there are some solid numbers"

"Seriously. Syfy has been invaded by wrestling (that properly belongs on SOAPnet) and wild goose chases (Ghost Hunters, Destination Truth, etc.) and other crap and they cancel shows like Caprica. It's becoming unwatchable."

Keep it real wolfie!

he should replace the geek squad. (1)

Joe_Dragon (2206452) | more than 2 years ago | (#40900929)

How about renting out the geek squad space to 3rd party computer places at cheap prices then renting there own store front

Re:he should replace the geek squad. (2)

Latentius (2557506) | more than 2 years ago | (#40901395)

Perhaps because it becomes impossible to ensure even the slightest bit of consistency when using third parties?

Sure, Geek Squad isn't perfect--full disclosure: I work there--but if you thought the quality was inconsistent or lacking right now, just try coordinating 1000+ local third-party repair outfits. Talk about a nightmare waiting to happen.

Re:he should replace the geek squad. (1)

Joe_Dragon (2206452) | more than 2 years ago | (#40901565)

the best thing for best buy is to have independent techs that don't have sales goals, or quotes. Or that personality test.

We need real techs not sales men. Staples easy tech is all about selling.

The best thing for them is to nuke Geek Squad it used to be good then best buy took over and later on they pulled a circuit city and got rid of the good techs.

IT pro's used to work at best buy for a part time side job to get more cash and the discount.

All Best Buy jokes aside.... (4, Interesting)

Kwirl (877607) | more than 2 years ago | (#40900975)

This actually is very interesting. I don't know what the plan is for this, but i do know that being beholden to shareholders has forced many companies to make business decisions that were not very prudent in the long term.

by going private, this would allow Best Buy to alter their current strategy and become more competitive in the electronics marketplace.

no one is going to invest 8.5 billion dollars for something like this without a solid plan. i can think of dozens of ways to improve their bottom line, and i'm sure that people more experienced than i could think of hundreds. what best buy has at the moment is a huge chain (nationwide?) of retail locations that their local demographic typically depend upon for their electronics needs. however, with amazon and probably newegg biting hard into their overhead, this might be part of a strategy to expand their online presence. this would be a move that the shareholders would never agree to, as it would involve short term loss for long term presence - but as a private entity beholden to none, they could make a mint by simply offering electronics online or 'ship to store' at competitive prices by investing in distribution and warehousing facilities

Re:All Best Buy jokes aside.... (2)

phriedom (561200) | more than 2 years ago | (#40901151)

I'm excited to see what this guy might do with the company if he doesn't have to answer to shareholders, but I disagree that his willingness to gamble $8.5 billion means anything as to the quality of the plan. Cerberus took Chrysler private and were still losing money when they sold it to Fiat. Smart people valued Zynga at $7.5 billion not too long ago and it is worth $2.23 billion today and I don't think it will stop falling soon. The fact that this guy thinks he can make it worth more than $8.5 billion just means he has a lot of confidence.

Re:All Best Buy jokes aside.... (1)

Anonymous Coward | more than 2 years ago | (#40901325)

Have you really looked at Chrysler and Zynga as a company? I know for one, i would never want to buy a car from Chrysler. And Zynga, well I seen their failure coming when they said they were willing to just copy everyone else without adding any originality to their games.

You can't compare two fairly bad companies to Best Buy. No matter how much you hate Best Buy for whatever reason.

The reason people share this animosity toward Best Buy is because we've been spoiled by the likes of online retailers. I for one am guilty of this (very guilty).
But the fact of the matter is that, they can very much gain an edge over online retailers in every aspect. They just need to start thinking outside the box a little more.

And the first place to start is (like the OP said) online.

Re:All Best Buy jokes aside.... (0)

Anonymous Coward | more than 2 years ago | (#40901351)

Their plan will be to implant monitoring/control devices in all the workers. They'll do 12 hours on 12 hours off like hospital workers do, but they'll be salary with 5% commission on extras sold. The monitoring/control devices will ensure that they don't take any breaks that last a millisecond longer than what is legally mandated, and that they are trying to push all the magazine/candy/cables/warranty/replacement plans/insurance/etc for each customer at the checkout. Also they're raising their prices another 20% to cover costs..this will not be a problem because most people obviously do not have or use the Internet. Also, employees will be forbidden to order anything online or to even speak to any of Best Buy's competitors. Should they leave the company, the monitor/control devices will be removed which will kill the workers. Morale will be at an all time high and if sales numbers keep up with the numbers from 1998 profits will also be at a record high with the new inflated prices. This couldn't possibly be a horrible scam to divest investors of their money.

He bid way too much. (0)

Anonymous Coward | more than 2 years ago | (#40900985)

The only explanation I have for this is that someone has stock and needs to cash out. Best Buy is a damaged brand with unprofitable store and unwanted products it's not worth $10 a share.

Re:He bid way too much. (1)

Latentius (2557506) | more than 2 years ago | (#40901407)

Incorrect, sir. The store actually does make a profit. And, in fact, profits are continuing to grow. The issue for the store is that profits are growing at a much smaller rate than they'd like. It's not like the store is actually losing money (yet), on the whole, but it could certainly turn that way if they don't make some drastic changes.

New Markets (2)

chadruva (613658) | more than 2 years ago | (#40901169)

They should just increase operations in emerging economies, Best Buy in Mexico is doing quite well as far as I know, the Guadalajara store payed off in 1 and a half years when the expected best case scenario was 4 years.

In the U.S. they should just decrease brick and mortar stores and move to online retailing.

My plan to save Best Buy (5, Funny)

SuperKendall (25149) | more than 2 years ago | (#40901183)

You know what would be a smart plan? Re-cast Best Buy as a "test the electronics" store. You charge $50/hour to rent a testing room where you can try any electronics that you like, and a means to easily order from Amazon on the spot.

The store doesn't have to have much stock, or as many employees (since they are not moving a lot of stock around). The would of course also get affiliate commissions from Amazon for all equipment purchased.

The difference is that it would be making money off the way people use Best Buy already...

Re:My plan to save Best Buy (-1)

Anonymous Coward | more than 2 years ago | (#40901413)

That's the dumbest fucking thing I've ever heard.

Here's a plan... (1)

gr8_phk (621180) | more than 2 years ago | (#40901187)

Pure speculation based on past observations of other companies:
1) get some money together
2) get the current management on board (their help is needed to take it private).
3) given #2, get the stock to drop more (this step is optional but I just noticed #2 can help).
4) Offer a "premium" over the current price to get shareholders to allow the buyout.
5) Once private, sell all company assets (real estate) to companies owned by the same private investors - dirt cheap.
6) Lease said assets back to company on whatever terms will make the next steps work best.
7) Make some changes to make the company appear better than before
8) Issue new shares to the public to recover the money spent in #4.
9) Try to sustain it long enough to unload all the shares and keep a paying tenant in the buildings purchased in #5.

Since it is the founder this is less likely to resemble their idea of a plan. Let's see who gets on board with him.

If I was a Best Buy shareholder, (1)

ddd0004 (1984672) | more than 2 years ago | (#40901193)

I couldn't agree to this fast enough

Liquidation (2)

Der Huhn Teufel (688813) | more than 2 years ago | (#40901279)

So what are Best Buy's total assets for all their stores? That's a lot of prime retail space in many places, to say nothing of the huge quantity of electronics.

Going private (0)

Anonymous Coward | more than 2 years ago | (#40901479)

I predict going private is going to be a bit of a fad in the next 5 years, as a means to capture undervalued primary firms and monetize the next boom. There is a shortage of deals as compared to available idle capital. Note 10 year bond rates and trend.

JJ

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