Schulze’s Bid For Best Buy May Be In Trouble

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It seems that Dell (NASDAQ:DELL) is not the only company considering a move to the private sector, as Best Buy’s (NYSE:BBY) founder Richard Schulze is reportedly making an effort to buy back his former company from the public market.Best_Buy

However, Reuters is reporting that Schulze’s plan has hit some snags, as he searches for minority investments to take a non-controlling stake in the company. Minority investments could take the form of a private investment in public equity (PIPE) transaction, and 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.

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It was noted that the investors being tapped to help move Best Buy private again are having a hard time putting money behind the company, which has had some difficulties in the past maintaining market share against online competition, like Amazon (NASDAQ:AMZN).

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