Best Buy founder offers to buy company, take it private

Best Buy founder offers to buy company, take it private

August 6th, 2012 by Associated Press in Local - Breaking News

Best Buy's founder Richard Schulzs wants to take the electronics retailer private by buying up all of its outstanding shares he doesn't already own for $24 to $26 each.

Photo by Associated Press/Times Free Press.

MINNEAPOLIS - Best Buy's founder says he wants to take the electronics retailer private by buying up all of its outstanding shares he doesn't already own for $24 to $26 each.

Best Buy shares jumped 22 percent on the news.

Richard Schulze also served as the Minneapolis-based company's chairman until resigning in June amid a scandal involving its CEO. The offer represents a 36 percent to 47 percent premium over Best Buy's Friday closing stock price.

Schulze is Best Buy's largest shareholder, controlling about 20 percent of its shares.

He says he's developed a plan to deal with the company's challenges and has talked with private equity firms.

Schulze says he plans to finance the deal through a combination of private equity investments, about $1 billion of his own equity and debt.