Best Buy Co Inc founder Richard Schulze's effort to take the company private is in trouble after attempts to secure financing faltered while an alternative strategy to line up minority investors may not pan out either, five sources familiar with the matter said. No longer pursuing a full takeover bid for the troubled electronics retailer, Schulze has focused discussions in recent weeks on a potential deal in which private equity firms would purchase a non-controlling stake, the sources, who declined to be named because the discussions are private, said.A minority investment -- which could take the form of a private investment in public equity (PIPE) transaction, is often used by small and mid-cap firms that have difficulty raising capital in public markets. Private equity firms typically get stock at a discount to the public market valuation.But the potential investors remain unconvinced with the idea of investing in a company that has struggled to maintain market share against online retailers like Amazon.com Inc, the sources added.Schulze has until Thursday to submit a takeover proposal to the Best Buy board, a deadline that was already extended in December to let him include the company's full-year results as part of his due diligence review.
Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, serves consumers through its retail websites and focus on selection, price, and convenience. Shares of AMZN fell by 0.2% or $-0.51/share to $259.36. In the past year, the shares have traded as low as $176.58 and as high as $284.72. On average, 3611510 shares of AMZN exchange hands on a given day and today's volume is recorded at 3325593.
Best Buy Co., Inc. is a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances and related services. Shares of BBY fell by 3.18% or $-0.54/share to $16.46. In the past year, the shares have traded as low as $11.20 and as high as $27.95. On average, 10393000 shares of BBY exchange hands on a given day and today's volume is recorded at 9927491.
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