Will Best Buy Find Another Buyer If Richard Schulze Can’t Deliver?
Best Buy (NYSE: BBY), owner of the mindSHIFT and Geek Squad IT services businesses, may receive a takeover bid from its founder in February 2013, but I'm starting to think the struggling retailer may need to find an alternative buyer to remain relevant over the long haul. Here's why.
Best Buy's stock spiraled downward today when the retailer said it will give founder Richard Schulze more time to put together a potential bid for the company. Earlier reports suggested a bid may come within days. Now, the deadline has been pushed out until February 2013. The extension suggests that Schulze may be having trouble putting together a team of investors to buy the company.
In the meantime Best Buy's core retail business is struggling as more technology shoppers shift their dollars to online stores. In the IT market, Best Buy's mindSHIFT division continues to push into cloud services and the Geek Squad team has been expanding its partner program. I am not hearing about any turbulence with mindSHIFT, which is a top 100 MSP and top 100 CSP. But I am starting to wonder if Best Buy's corporate uncertainty will begin to impact the IT services push.
Certainly, Best Buy, mindSHIFT and Geek Squad deserve equal time on this topic. I'm checking in with them now for potential interviews and comments.