The latest offer from its minority ownership was considered 'poor' by Best Buy Co., prompting it to reject the bid by Richard Shulze's private equity sponsors. The move was a response to the founder of Best Buy to privatize the company.
The proposal, informal at best, pegged the share price for the largest consumer electronics retailer between US$24 to US$26 per share in August 2012. Unfortunately, Shulze's group was unable to procure the necessary debt and financing. This move ends what is considered as the last stand bid by Shulze to take back the company he founded back in 1966. His bid was valued between US$8.16 billion to US$8.64 billion and can reach up to US$10.9 billion if debts were included.
According to CEO Hubert Joly, Shulze had lined up Best Buy with several private equity sponsors, amongst them Cerberus Capital Management LP, TPG Capital and Leonard & Green & Partners.
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