Best Buy Founder Back In (Potential) Buyer Seat
Best Buy (NYSE: BBY) and founder Richard Schulze have reached an agreement, permitting Schulze to perform due diligence on the struggling retailer. The confidential agreement could pave the way for Schulze and investment partners to acquired Best Buy and take the company private. But financial experts think such a scenario is a long-shot, and the real story for MSPs continues to be mindSHIFT — Best Buy’s MSP arm — and its continued expansion.
Schulze has 60 days to submit a fully financed proposal. But financial experts quoted across mainstream media think such a buyout is unlikely, which explains why Best Buy shares have not jumped all that much amid the buyout chatter. (The Star Tribune has a very detailed article explaining the potential buyout scenarios and challenges.)
Adding to the intrigue: Best Buy recently named Hubert Joly as its next CEO. Joly has no retail experience, but he has previously turned around restaurants and he ran the European arm of EDS at one time — suggesting that he understands IT outsourcing, a potential boon for mindSHIFT.
Speaking of mindSHIFT, several rivals remain amazed that the MSP managed to acquire White Glove Technologies in June. “It shows that [mindSHIFT CEO] Paul [Chisholm] has managed to keep his portion of the business incredibly focused,” said one industry CEO. “Few deals surprise me. That one did.”
mindSHIFT acquired White Glove to gain a bigger reach across Texas. The company has also expanded its Chicago base. Chisholm earlier this year told MSPmentor that mindSHIFT remains focused and on-plan.
That’s quite a feat considering parent Best Buy’s management changes, financial challenges and potential ownership questions.