Best Buy Finally Agrees To Let Founder Schulze Poke Around All Up In Its Business

He begged, he pleaded, he wrote passionate letters asking for Best Buy to let him back in, and now it appears founder and former chairman Richard Schulze is finally getting his way. Or he’s at least going to be allowed to check out the information he needs to make a bid to buy the company.

Of course, this doesn’t mean that it’ll be all green lights on Schulze’s road toward acquiring Best Buy. This just means he’s been given permission to form an investment group and go about doing due diligence. As Reuters reports, this agreement is a nonexclusive deal, one that Schulze says he’s pleased with.

Now that he’s in the door, Shulze will get a gander at Best Buy’s private information in order to get his bid together properly within 60 days. He’s also got a golden ticket to bypass a Minnesota law that says he needs the board’s final approval before he makes a formal bid and doesn’t have to deal with an 18-month standstill period that was included in an earlier deal. Instead, if the board says no, he only has to wait to try again four months later.

This could be bad news for the newly-announced but currently visa-less Hubert Joly, as it’s expected that Schulze would designate his own choice of CEO to helm the struggling company. That’ll be fine for Joly we bet, as he’ll get at least $6.25 million no matter what.

Best Buy agrees to open books to Schulze group [Reuters]

 

Comments

Edit Your Comment

  1. scoutermac says:

    Sounds like he might save Best Buy yet.

  2. Banished to the Corner says:

    I wish the man (and his investors) luck in this attempt. If not, I don’t think the store will survive.

    It’s too bad, as I prefer purchasing stuff I can see. I’m never completely happy when I have to buy stuff online.

    • MathMan aka Random Talker says:

      And many people agree with you, that’s why they use Best Buy as a showroom for the products and then buy online.

    • rgf207 says:

      Yea I hear you. There’s nothing I hate more than going online and purchasing something for 25% less than I can get at BestBuy. Also, what’s up with Amazon these days? They don’t ask me to sign up for credit cards or try to get me to switch to DirecTV every time I try to purchase anything. These online retailers have their days numbered IMHO.

      • nbs2 says:

        Wow. What’s with the snark? It is a good point – there are benefits to being able to see the product that you are buying. Amazon is great with their customer service – I don’t think anybody would contest that – but it is nice to be able to physically handle the product before you exchange funds for goods.

        Here’s an example for you – we bought a garbage can from BBB online. When it arrived, the can was damaged. We were able to take it to the store, where they ordered a replacement. The replacement was in even worse condition. Rather than have us try to order again, they sold us a better variant for the same price. We knew it was in good condition when we bought it because we could open the box.

        Or do you prefer a world without B&M locations?

        • Pagan wants a +1 button says:

          I’m too impatient for mail order most of the time. When I want to buy an item, I want to see its exact color, shape and size, check out where it was made and most importantly, I want it NOW.

        • Kuri says:

          I’m of the same mind right now. I’m in the market for a new keyboard and would like to physically see one before I buy one.

          • MBZ321 says:

            I know other people mentioned this before, but Amazon should try out having a “catalog” type store, similar to what Service Merchandise, Best, etc. used to do. Take the most popular Amazon products from each category and have basically a “dummy store”, with maybe some stock to sell in the back for a store pick-up. Computer terminals can be used to order other items, and maybe have a “free shipping to store” like Walmart does. Only problem is, they would definitely have to collect tax in states where they did this, and people would complain even more.

            • Kuri says:

              I would LOVE that. I did a crap ton of research before I purchased a video camera, and am guilty of using Best Buy as a showroom.

              I have an idea of what Keyboard I want, I just want to have the chance to take a look and get a feel fore it.

        • rgf207 says:

          my bad. I was just making a joke. Didn’t mean to be offensive

        • Unbeknownst2U says:

          Actually, yes.

          Why would I need to “touch,” among other products a TV, a lifeless shelf-contained Blue-ray, DVD player or audio receiver at BBY? Well-researched, I already know the laptop prices are no big deal. All one has to do is look at the reviews on CNET, Amazon and Consumer Reports or others and one has ALL the info needed.

          More time to read, spend time with my kids, play sports. I don’t need to waste gas to listen to or engage in the nonsense and lies or deal with restrictive policies at the major consumer electronics B&M stores such as BBY, HHG and the like.

          btw, even accessories are more easily purchased through EBay.

      • Michael Belisle says:

        I’ve recently noticed that Amazon isn’t always cheaper, mostly on small parts. I’ve run across a bunch of things where I’ve gone to Amazon to get a “best price” reference since it’s engrained in my mind that Amazon is almost always the best price and I’m loathe to order from anywhere that charges me for shipping.

        But then I’ll stop and think “Wait, why is this scrub brush $7.99 when the MSRP is $4.99? And I can at BB&B right now with a 20% off coupon.”

      • Jawaka says:

        No, Amazon doesn’t push credit cards on you, they just push Amazon Prime on you every time you turn around. Yeah, much better.

      • quail20 says:

        The last micro SD card I got from Amazon had the micro SD card missing from the package. The adapter was there but no card. It delayed me a week from getting what I needed for my new phone. Wound up paying more at a brick & mortar store. But I knew what was in my bag when I got home. Amazon is great, but sometimes the vendors that use them don’t have a tight reign on things on their own end.

        Plus, comparisons are hard to do on certain things online. With all of the paid for reviews too it becomes harder to know what is true and what isn’t.

  3. Jawaka says:

    Taking the company private is a good first step.

    Any company is already at a disadvantage when their first priority always has to be satisfying stock holders.

  4. Overheal says:

    The sentiment from my peers who are read up on the situation is quite unanimous: we all wish Schulze the best of luck and would very much look forward to having his leadership and taking the company off the public market, which is currently leading to too much short-term, knee-jerk changes, like screwing up the Asset Protection model to save a buck now and lose three later.

    • Namilia says:

      I agree. Best of luck to Schulze. Must really be sucky to watch something you built yourself be going the way it is now.

    • djkatscan says:

      Ready, Fire, Aim…classic Best Buy……Overheal you are learning the ways of the big blue box at last….. Wassamatter, didn’t drink your daily dose of blue koolaid today?