Best Buy Founder Offers To Buy Co, Take It Private

By: Associated Press
By: Associated Press

MINNEAPOLIS (AP) -- Best Buy's co-founder is looking to make a buy of his own, offering to take the electronics seller private. The move comes just months after leaving as the company's chairman following a scandal involving its CEO.

It's the latest twist to the Minneapolis company's struggles to stay relevant as more and more people buy electronics online. Over the past year it has announced a major restructuring plan and fired its CEO. The company is attempting to revamp itself to avoid the fate of its rival Circuit City, which went bankrupt in 2009, partly because of changing shopper habits.

The offer, made by co-founder and former Chairman Richard Schulze, values the company at as much as $8.84 billion. Schulze already has a 20.1 percent of the stock in the company, so paying for the rest of shares would mean coming up with about $6.9 billion.

At midday, Best Buy shares were up about 10 percent.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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