What Does Resignation of Best Buy Founder Mean for Retailer?

June 8, 2012 · Posted in M&E Daily, Today's M&E Connections 

With Best Buy founder and chairman Richard Schulze announcing his resignation from the company’s board, and his intention to explore options for his 20.1 percent ownership stake, analysts are evaluating what may lie ahead for the beleaguered electronics and entertainment chain (via Reuters).

Schulze’s announcement comes just two months after the exit of chief executive Brian Dunn (see Marty Porter’s commentary on that news here). The chain continues to search for a new CEO.

Schulze’s stepping down may be a precursor to his engineering a leveraged buyout offer for the company, Reuters reports. However, BB&T Capital Markets analyst Anthony Chukumba tells Reuters, potential buyers would pay a steep price for the company — likely around $10 billion —even given Best Buy’s depressed stock price and the business challenges it faces.

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