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    Best Buy founder reportedly working to take company private

    Best Buy founder reportedly working to take company private


    Best Buy founder Richard Schulze is reportedly considering what to do with his 20-percent stake in the company — including the option of leading an initiative to take the company private.

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    Best Buy founder Richard Schulze agreed to leave the company last month in the aftermath of a scandal involving the company's former CEO Brian Dunn, but that's not stopping him from being involved: he may be exploring options that would take the company private again. The Wall Street Journal is reporting that Schulze has been considering selling his stake in the company outright — at over 20 percent, it's worth some $1.4 billion— but he would prefer to take the company private instead. Schulze had initially been scheduled to leave the Best Buy board next year, but earlier this month he resigned ahead of schedule, opening the possibility for such a move.

    He's reportedly begun working with Credit Suisse Group to find partners for such an effort, but given the company's recent financial woes — Best Buy posted a $1.7 billion quarterly loss this past March — there's no guarantee he'll be successful. The Journal is reporting that with Best Buy's enterprise value pegged at $8 billion, a buyout offer would need to be in the neighborhood of $11 billion. It's simply the latest sign of the big-box retailer's continued struggles as it has been hit by declines in physical music and television sales, along with increased competition from online retailers.