Best Buy Founder Makes $8.5 Billion Bid To Take Company Private 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."
Riiight... (Score:3, Interesting)
Title should read "Best Buy Founder Tells World He Will Try To Find $8.5 Billion To Take Company Private"
I doubt he gets it.
Re:Riiight... (Score:5, Interesting)
Re:Riiight... (Score:5, Interesting)
today i spent over an hour in my local best buy trying to find something for under 500$ 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... (Score:5, Insightful)
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: (Score:2)
That will get you a 6" Monster brand HDMI cable, but it's not enough for the extended warranty.
Fixed that for you.
Re: (Score:2, Funny)
The electrons have better resolution in them.
Re:Riiight... (Score:5, Funny)
Yeah, the ones are so much more oney than if you use a non-premium brand HDMI cable that costs 10% of what Monster charges! Monster's cable quality is so superior to other brands - I mean, look at how they crimp on the connection. If you don't get a nice tight crimp with all that hard plastic around it, the zeros will fall out of the cable, and you'll have a big mess on the ground behind your TV, or a bucket that you'll have to dump every once in a while.
Re: (Score:3)
Re:Riiight... (Score:4, Interesting)
...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: (Score:2)
I know they're just trying to offload inventory at the lowest price point; which for 90% of people is all they care about.
No, they're trying to offload what will sound most impressive with the cheapest possible components. Which is why for example most OEM models were consistently RAM starved, people looked at the CPU and GPU so slashing that saved some bucks. That is also why AMD and nVidia do rebrands of their graphics card so it sounds like they're from the most recent series. That said, they do have some good deals so the tech-savvy people don't shun them. They know for everyone who follows your brand, they're likely to ge
Re: (Score:3)
One thing that's annoying me more and more about desktop PCs is the size. With everything so integrated, and having 4+ drives no longer worth the hassle (I have 2 HDs in a RAID1 mirror), it really seems like the case sizes should have shrunk a lot. But they haven't; we still have the same giant ATX cases as we had 15 years ago, typically with 3 5.25" slots, 2 3.5" slots, 4 internal 3.5" slots, etc. Most of the space inside my case is empty and wasted.
Re: (Score:3)
Re: (Score:2)
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: (Score:3)
If you're basing your decision of what region in which to live on proximity to a retail big-box chain, you've got some serious fucking problems.
Re: (Score:2)
I live about 3 miles from a Fry's. It's not that great; I usually order my stuff from Newegg instead. Yes, it is nice for those extremely rare times that I really need something fast, but this is usually just for work, not for personal use. The prices are OK, but the employees are annoying, the returns process sucks, and the other customers remind me of shopping at Walmart. Yes, the selection and prices are far better than Worst Buy, but they're still not as good as Newegg. I'm going to be moving acros
Re: (Score:3)
No, it's the same one. It's not nearly as bad as Worst Buy (holy shit that place is a nightmare if you want to return something; my wife and I tried that once because she didn't want to wait for a laptop from Newegg, so we got one at BB over my protests, and of course it had a problem, and they didn't want to take it back without paying a fee; now she refuses to step into another BB). However, it is a hassle, as it's very slow, as the line is frequently long, and they always, for some stupid reason, have
Re: (Score:3)
If the guy has enough money to buy back the company now, why not wait for the downturn then buy it for less? Hostile takeovers are only a problem if you don't have the money to fight them.
Re:Cables (SATA != Joystick) (Score:4, Funny)
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 (Score:4, Insightful)
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: (Score:3)
At $50 for a USB cable, you're better off buying a $50 USB printer, and reselling the ink on eBay!
Re: (Score:2, Informative)
dead serious, I have a 100$ 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: (Score:2, Informative)
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... (Score:5, Insightful)
Re: (Score:2)
Digital Convergence [wikipedia.org] did.
Not stupidity, desperation... (Score:3)
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 un
Re: (Score:3)
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
Re: (Score:2)
It's sad to say, but I really miss the old TRS, and even CompUSA, Tweeter and CIrcuit City
I totally agree, it used to be you had somewhere to go for something that would seem to be common, like soldier or some slightly different computer cable. Now it's much harder to find such store.
Re: (Score:2)
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
Re: (Score:3)
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 re
Re: (Score:2)
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.
Well that's your problem, but it doesn't mean there's money in solving it. Desperation items are normally small and far between, if I'm only occasionally buying a forgotten $10 SATA cable for a $1000 machine then your market is really really small. And you must really be desperate, would you really need those headphones right now or will a pair of 0.99$ earplugs get you by until your new ones arrive? Tell the kids to share or nobody gets to play until the controller arrives. And for all that you need invent
Re: (Score:2)
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: (Score:2)
Yes, I buy everything I can online.
But sometimes even next day is too slow. Like if I'm going over to a family members house to set up something - if I do not have what I need with me, and they live a good distance away I don't want to go back twice. Thus I am willing to pay even a 200% markup on an item just to have it, for any item less than $50...
The fact that I can't get a lot of the things I might need at the last moment anymore, is why I finally stopped going to Best Buy... not because the markup is
Re: (Score:3)
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,
Re: (Score:3)
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: (Score:2)
19 bucks for an ethernet cable? Before I buy that I risk enabling WiFi.
Re: (Score:2)
Re:Riiight... (Score:4, Interesting)
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.
Well, then they'll have a very good story for when they go out of business.
Plus you are giving an accountant's version of reality. One in which the customer is a mindless automaton.
When I as a customer, go into a Best Buy and see a cable I can buy online for 4 dollars and they are selling it for 30 dollars, it pretty much pisses me off. I leave the store, and don't go back. Because for all the calculations about profit per square inch, if the customer won't return to the store, it doesn't matter how clever the accountants are.
You see this a lot these days, in big box stores. Our Lowe's stores hardly ever has any parts for repairing things, even if they have a thousand five gallon buckets of contractor grade wall paint. I've wasted a lot of time looking for things they should have, but don't. They have a lot of overhead, and won't stock small parts that I need because some accountant figured there wasn't enough profit in that. So I just travel across town to the True Value store. And yeah, for that one purchase, True Value only makes a little bit. But then when I need something bigger, I just go to the True Value instead of the Lowe's. The price is often better too.
Re: (Score:2)
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
Re:Riiight... (Score:5, Informative)
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: (Score:2)
Just wait for sales though - iTunes cards are regularly 20% off (yes, it comes out of that 30% cut Apple takes) and you can bet while it's going on the store is still making a profit out of it (splitting the 10% leftover).
So you can buy 2 $50 cards, and 1 $20 card and have nothing left over except christmas presents for peop
Re: (Score:2)
CDs. The one by our house has a good selection of the Rhino re-releases. Picked up a few old Elvis Costello records we didn't have or lost.
Seriously, that's the only thing I can find to buy when I get a Best Buy gift card. The only other thing I've bought there in the last ten years is my DSLR, as they were running a pretty good sale that included a nice camera bag and lens kit. I've never seen anything else there worth buying at the prices being offered.
Re: (Score:3)
Depends on the sort of things you want. Bestbuy gets preferential treatment for release allocations of certain products (collectors editions of video games, peripherals that sort of thing) where if you didn't pre-order you'd be SOL anywhere else. But best buy will usually have them in stock.
They also stuck a bunch of stuff that's about the same price as the decent online retailers, routers, generic speaker type parts, that sort of thing. Don't go into best buy expecting anyone there to have a brain, that
Re: (Score:3)
dead serious, I have a 100$ best buy card.. Ive had it for 2 years.
Might want to double-check they're still worth $100 and Best Buy hasn't started charging you an "account maintenance fee" for not using them. I know such fees have gone horribly out of fashion with most retailers after consumer backlash to them originally, but this is Best Buy we're taking about.
Re: (Score:2)
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: (Score:2)
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
Re: (Score:2)
He will get it. (Score:5, Insightful)
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.
Re:He is a job creator (Score:5, Insightful)
"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: (Score:2, Insightful)
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 (Score:5, Insightful)
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: (Score:3)
People are not embarrassed to be on welfare - Sadly, some are not.
People make more money on welfare than on a minimum wage job - Depends on their situation, but it's entirely possible. It generally takes at least one minor involved to make this true though.
Or: most people who are on welfare are gaming the system and riding the gravy train - Doesn't need to reach 'most' in order for massive amounts of fraud to occur. See the article about something like 1.5k false rebates submitted to the IRS. It's not th
Re: (Score:3)
Being as I'm coming from experience on this, your statements are a bit absurd.
- People are not embarrassed to be on welfare
Um, many people are. Some people are embarrassed to collect unemployment insurance, though they're the extreme. At least for many men I know, it's embarrassing in the same way that it's embarrassing to "let" their wives mow the lawn: it's their job to do it, and it makes them uncomfortable.
- People make more money on welfare than on a minimum wage job
I don't know what minimum wage is where you're at, but it's still $5.15 in Wyoming. For a single person with a single child, it is absolutely e
No, it's a rational choice. (Score:5, Insightful)
People are willing to work for a good salary or a good hourly rate.
Drop the hourly rate and the benefits to below living wage, and they have no incentive to work full time, particularly if they can satisfy needs better with the social safety net. Why work if you're still going to bo bankrupt?
Of course, we then say "well then let's drop the value of the safety net so that it's below the wages that are available."
But then you risk another rational choice: criminal activity. Why work legally and go bankrupt if you can work in the gray or illegally and survive? That's where spammers and drug dealers come from.
Most people don't see any particular task as beneath them, but they do see some wage levels as pointless thumb-twirling. You want people to scrub toilets? Pay them an annual wage above the federal poverty level and they'll be happy to. Pay them twice the federal poverty level and they'll whistle while they do it. Pay them at minimum wage or below, and there are very few jobs you can get them to do.
Yes, this picture is incompatible with our macroeconomic situation. But microactors don't care about macroeconomics. They care about making ends meet and accounting to those to whom they are accountable (creditors, utilities, and dependents first amongst these, not "the system").
Re: (Score:3)
Welfare as a safety net is wonderful. I use it myself because I'm autistic, and it's a damned good relief not to have to bust my brains looking for a job that simply isn't there.
Nobody wants to hire me because I'm a lunatic with no social graces, and I was born that way.
To imply that I deserve to fall by the wayside is to imply that we subscribe to darwinian socialism of survival of the fittest.
Change will occur (Score:2)
"Creating jobs" at Best Buy right now is like hiring people at a buggy whip factory in the 1930s to escape the depression.
Of course Best Buy would not stay as it is. Anyone thinking about buying Best Buy has some kind of plan to try and be profitable, which obviously would be different than what they do now as they are collapsing.
So YES it is job creation, it's the possibility of long term jobs vs. the reality (that you acknowledge) that without a buyer there is will be no Best Buy at some point.
Re:He is a job creator (Score:4, Interesting)
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 (Score:5, Insightful)
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.
Insanity (Score:3, Insightful)
Your example is quite literally insane, and the most twisted idea of what a job is I have never seen.
The fact is I have created the job regardless of what the person does. They still get money from me. The job may go to someone else soon, but the job exists independently of the quality of the one that holds it.
Likewise, if you have an existing job that becomes open (employee moves, quits, whatever), hiring a replacement isn't "creating a job".
I cannot help here but brandish the colloquialism DUH DUH DUH D
Re: (Score:2)
The fact is I have created the job regardless of what the person does. They still get money from me.
Until you run out of money because you are paying people who don't add any value to your company.
As an example, IBM could probably afford to pay every unemployed person in the US a living wage to do nothing, but even they would burn through their money pretty quickly doing that, and then all those jobs would disappear, along with all current jobs that IBM has created that were being used to finance their generosity to the unemployed. A "created" job doesn't have to exist forever, but it does have to add va
P.S. you have the attitude of a servant (Score:3)
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.
A more ignorant statement of why people start businesses, I could not imagine...
Most businesses are not really started around money, they are started because the owner wants to do something better. That is why I created my own business as a consultant, because I was fed up with how corporate IT did development and I wanted more control over the process of prog
Re: (Score:3)
I think the disconnect you guys are having surrounds your definition of "job creator." SuperKendall seems to define it literally. That is, somebody who owns a business and hires people to do work. Opportunist seems to be following the attempts by certain political types to redefine "super-wealthy sociopathic leach on society" as "job creator," and does not like it.
I don't think any sane person has a problem with literal "job creators." I think lots of people have problems with "super-wealthy sociopathic lea
Re: (Score:2)
Which is accurate.
Not really.
The true job creators are the people who do real work to create real capital and wealth.
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.
And if all the 'job creators' just went away, the market would solve the problem. That is what the free market is actually good at. We'd have a rush of new startups... withou
Surprise. (Score:2)
Last rumor I heard (here), he would take a golden parachute to escape before BB crumbled.
Re:Surprise. (Score:5, Interesting)
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: (Score:2)
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% ! (Score:2)
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 in
Why hasn't this pushed the stock price up? (Score:2)
Re: (Score:2)
Re: (Score:3)
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: (Score:2)
Re: (Score:2)
So, you are suggesting that the founder is engaging in a scam? I'm confused...
Re: (Score:2)
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: (Score:2)
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: (Score:2)
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: (Score:3)
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? (Score:4, Informative)
Re: (Score:2)
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.
Wouldn't have to ask me twice (Score:5, Insightful)
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 (Score:5, Funny)
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: (Score:2)
I tried that, the camera I wanted wasnt in stock, no discount on the finger fucked model, got it from amazon for 10 bucks cheaper
he should replace the geek squad. (Score:2)
How about renting out the geek squad space to 3rd party computer places at cheap prices then renting there own store front
Re: (Score:2)
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.
Re:he should replace the geek squad. (Score:5, Informative)
Well, I can't speak for all of Geek Squad, but I can assure you, I wasn't handled for my sales ability or for an outgoing personality. I was hired because I'm intelligent and know how to deal with computer issues. Yes, sometimes I end up doing some sales, but if you were to count the number of people I actually sell things to (or even try to sell things to) versus the number that I help--for free--at the counter, just answering questions and fixing minor issues, it's actually a very low ratio.
I think Geek Squad--much like Best Buy as a whole--gets a much worse rep than is deserved. I've said it before, and I'll say it again--they're far from perfect. But from what I've personally experienced, the majority of people who come to us leave satisfied. The problem is that the minority who aren't satisfied are VERY vocal about it. Moreover--and I could go on for hours with examples, but I'll avoid that here--many of the people who are dissatisfied, in my opinion, are that way due to their own unrealistic expectations.
Just a few quick examples: someone who has a TV with nothing more than the manufacturer's warranty comes in just weeks before it's about to expire and wants service done. Since we're bound to honor manufacturer's warranties by the manufacturer's terms, this means we have to send the unit out for service, which can potentially take a couple weeks. At this point, quite a few people just go apeshit. They think that any problem with their device, no matter how minor, entitles them to an immediate replacement to a brand new device, no matter how old their other is. Not only that, but when the unit comes back from service, they expect the warranty to magically be extended for another year (or however long it was originally for). When you have to break it to them that this simply isn't the case, they get pissed off, and then go shouting to anyone that will listen how awful Best Buy and Geek Squad are for something that is entirely out of our hands, and entirely standard across the industry.
Other times, people are just impatient. Computer maintenance takes time, pure and simple, to make sure you're not missing anything. Add on top of that the fact that sometimes you get a backlog of work and can't immediately start service on a person's computer. So, you tell them at check-in that it could take up to a week, and that you will give them a call just as soon as it's finished. So they call back the next day, asking if it's done. And then the next day, asking if it's done, and so on and so forth. When you try to explain to them what you're doing and why it's taking so long, suddenly everyone becomes the most important person in the world. "But I'm a student! I need it for class!" "But I need my computer for my business!" "But I have important emails to respond to!" People just don't seem to understand that EVERYONE thinks they're important, and we can't prioritize service based on how highly you think of yourself. If things were truly so important, you'd have a backup computer. Regardless, even if you manage to get the computer back to them in 4 days, versus a quoted 7, they show up all in a huff, complaining about everything taking so long, and proceed to go out and complain to everyone that'll listen how horrible service is. There's simply no winning with people. And God forbid if you need to send a computer to a service center for serious repairs...
This is pure conjecture on my part, but I'd say the biggest problem for Geek Squad does not necessarily come from the quality of the actual work done, but from the customer service aspect of the interactions. People simply hate being told something will take time, or that something is not covered (no, we won't send your device out just because you're getting near the end of your warranty if it shows absolutely no signs of malfunctioning). Unfortunately, I have no idea what anyone could do to fix that problem.
Re: (Score:3)
Based on your anecdotes, I'd argue that Best Buy is under-delivering on service in every possible manner.
For in-warranty defects, it's becoming fairly common to replace defective devices with new or refurbished ones when the warranty still applies, and to extend a 1-year warranty or longer from that day onward. If you turn in an iPad with a defective screen or to replace its battery, for instance, Apple will hand you a refurbished iPad -- not the one you brought in. As recently as a few months ago, they rep
All Best Buy jokes aside.... (Score:5, Interesting)
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: (Score:3)
Re: (Score:3)
however, with amazon and probably newegg biting hard into their overhead, this might be part of a strategy to expand their online presence.
The dumbest thing Best Buy could do is expand online and compete even more with Amazon and Newegg.
What Best Buy has is a lot of retail stores, and they need to find a way to better utilize that real estate. Hiring fewer but smarter people who don't have any sort of "commission" that controls the advice they give customers would be the best thing, because despite online reviews, sometimes you just need to talk to somebody. They also need a lot of computer programming to automate what gets stocked where, so
Re: (Score:3)
BBY is also competing with regional chains like HHGregg, BrandsmartUSA, Microcenter, Frys and others, and the warehouse clubs like Costco and Sams -which also happen to offer a narrow selection of electronics but still manage to do fine with it.
I am not sure if BBY realizes just how aggressive ALL of these companies are on price, on actually having the items in stock and standing behind the sale.
My family has recently replaced all the appliances in this house. We did not spend a dime at BBY. We used one
New Markets (Score:2)
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 (Score:5, Funny)
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...
Here's a plan... (Score:2)
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
Liquidation (Score:2)
Before you buy, showroom it! (Score:2)
When he goes to make his purchase of BBY stock, will he do what BBY customers do and look up the item before buying?
He's offering $26 a share. I bet Amazon has it for $12, Newegg for $13 and Monoprice for $1.87 in five colors.
Ah the sweet irony if this could happen. Not only is BBY cornered by arguably better competitors, the competitors even sell the company itself for less.
Yeah this works best as a joke on a late-night TV monologue.
Re: (Score:3)
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. (Score:5, Interesting)
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: (Score:2)
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: (Score:2)
Re: (Score:2)
How'd this post make it to +5? I gotta ask, because it reeks of big city arrogance, especially on the comment that the "small town rubes" don't have a clue.
Re: (Score:2)
"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.
There is a "Submit Story" link. Please use it. (Score:5, Informative)