Deadline for Schulze Best Buy takeover offer passes
The attempted buyout of Best Buy by founder Richard Schulze <a href="http://macnn.com/rd/280180==http://www.electronista.com/articles/12/10/03/first.steps.of.due.diligence.underway.deal.valued. at.11.billion/" rel='nofollow'>has failed</a>. The deadline has passed for Schulze and his team of investors without a bid having been placed for the ailing electronics retailer, with the news of the failure coming at the same time as the fourth quarter results showed the company made a loss of $377 million for the period, continuing its current <a href="http://macnn.com/rd/280181==http://www.electronista.com/articles/12/11/20/domestic.revenues.drop.47.percent.compared.to.last .year/" rel='nofollow'>financial trend</a>.<br />
Revenues for the quarter reached $16.7 billion, up from the $16.67 billion from the same quarter last year. The loss of $377 million this year is also a year-on-year improvement, last year losing $405 million. Domestic revenues declined 0.3-percent to $12.55 billion, with the closure of 49 big box stores being blamed, though the 0.9-percent comparable store sales increase and revenue from 126 Best Buy Mobile stores helped fill the earnings gap. <a href="http://macnn.com/rd/280182==http://www.electronista.com/articles/12/10/12/looks.to.combat.showrooming.this.holiday.season/" rel='nofollow'>Online sales</a> increased 11.2-percent, reaching a record $1.3 billion for the quarter.
International revenues increased by 2-percent to $4.16 billion compared to $4.09 billion last year. Changes in foreign currency exchange rates were given as the primary reason for the improvement, though it did offset a 6.6-percent decline in comparable store sales. Declining sales in Canada and China, caused through "overall industry softness" and increased competition from e-commerce in China, were offset by positive sales in European locations.
The offer of a buyout by Schulze was expected on or before February 28th, but there has been no word from a representative of Schulze or his investment team about the acquisition, valued at an estimated $11 billion. Best Buy released a <a href="http://macnn.com/rd/280183==http://pr.bby.com/best-buy-comments-on-status-of-agreement-with-dick-schulze/" rel='nofollow' target="_self" title="">statement</a> confirming the passing deadline and lack of an offer, and will now "continue to focus on its transformation for the benefit of all of its stakeholders."
|All times are GMT -4. The time now is 02:53 PM.||
Copyright © 2005-2007 MacNN. All rights reserved.
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2016, vBulletin Solutions, Inc.